Question

The equation A = 10,000(1 + 0.043t) represents the amount of money earned on a savings account with 4.3% annual simple interest. At the end of the investment period, the account balance is $15,160. How many years is the investment period?

10 years
11 years
12 years
13 years

Answer 1

Answer: 12 years

Explanation:

We will substitute the given amount after the investment period and then solve for t, the number of years the period was.

Given:

A = 10,000(1 + 0.043t)

Substitue:

15,160 = 10,000(1 + 0.043t)

Distribute:

15,160 = 10,000 + 430t

Subtract 10,000 from both sides of the equation:

5,160 = 430t

Divide both sides of the equation by 430:

t = 12 years