Question

A parent invests $2000 at a 5% interest rate to help his daughter save for college. How long will it take his money to double?

Answer 1

Answer: 20 years

Explanation:

Principal = $2000

Rate = 5%

Interest = $2000

Time = Unknown

Since we want to know the time it will take his money to double, that means he'll have an interest of $2000.

Interest= PRT/100

2000 = (2000 × 5 × T)/100

2000 = 10000T/100

Cross multiply

2000 × 100 = 10000T

200,000 = 10000T

T = 200,000/10,000

Time = 20 years