Question

4400 dollars is placed in an account with an annual interest rate of 7%. To the nearest year, how long will it take for the account value to reach 10100 dollars?

Answer 1

19 years approx

Explanation:

Given data

Principal P= $4400

Rate r=7%

Final amount A=$10100

Time t= ???

Let us apply the simple interest expression

A=P(1+rt)

substitute

10100=4400(1+0.07*t)

open bracket

10100=4400+308t

10100-4400=308t

5700=308t

t= 5700/308

t= 18.50

Hence the time is 19 years approx