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Suppose you wanted to invest $2500 with a small company owned by a friend of yours that pays 12.2% simple interest on the investment. How long would it take the money to grow to $3500 in this case? Show your work.

User Mrek
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1 Answer

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We have the following equation


3500=2500+2500\cdot0.122\cdot t

where the t is the time we want to know


\begin{gathered} 1000=2500\cdot0.122\cdot t \\ 1000=305t \\ t=(1000)/(305)=3.2786 \end{gathered}

so we have to wait at least 3 months to our money to increase to 3500

User Jgetner
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