Question

Algebraically manipulating the formula FV = P +Prt, find the time period in years (to the nearest whole year) it would take to quadruple (4 times) the initialdeposit of $1,000 at a simple interest rate of 5.5%.55 years61 years48 years37 yearsNone of these choices are correct.

Answer 1

55years

Step-by-step explanation:

According to the given expression

FV = P +Prt

P is the initial deposit = $1000

FV is the future value = 4(1000) = $4000

r is the rate = 5.5% = 0.055

Required

Time t

Substitute the given values into the expression as shown;

FV = P +Prt

4000 = 1000 + 1000(0.055)t

4000 - 1000 = 55t

3000 = 55t

Swap

55t = 3000

t = 3000/55

t = 54.5years

t = 55years

This means it will take the deposit of $1000 55years to quadruple