Question

louis is saving money for a car, he invests 1200 in an account that pays an interest rate of 7.5%. how many years will it take for the account to reach 14000?

Answer 1

142 years 3 months

Explanation:

Let us assume the investment is made using a simple interest

Given data

Principal p= $1200

Rate r= 7.5%= 7.5/100= 0.075

Final amount A= $14000

Time t=?

The Simple interest formula is expressed as

A= p(1+rt)

Substituting we can solve for t

14000= 1200(1+0.075t)

14000= 1200+90t

14000-1200=90t

12800= 90t

t= 12800/90t = 142.22 years

The time required to get a total amount, principal plus interest, of $14,000.00 from simple interest on a principal of $1,200.00 at an interest rate of 7.5% per year is 142.22 years (about 142 years 3 months).