Killrkit38
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If you invest $8,600 at a 3.95% simple annual interest rate, approximately how long will it take for you to have a total of $21,000? a. 25 years b. 36 years c. 45 years d. 60 years

Verified Answer :

Habitat319213

Well, Doing 8,600 x .0395, you get 339.7, then if you do that x 25, that's too low if you add 8600 to it, 36 years if you do 339.7 x 25, then add 8600 its extremely close to 21000. And since you put approximately, since this will round up, the best answer choice is definitely B

Hope this helps. Have a great day!

Lanuel

Approximately, the number of years it will take for you to have a total of $21,000 is: D. 60 years

Given the following data:

  • Principal = $8,600
  • Simple interest = $21,000
  • Interest rate = 3.95%

To find how long (time) it will take for you to have a total of $21,000:

Mathematically, simple interest is given by the formula:

\(S.I = \frac{PRT}{100}\)

Where:

  • S.I is the simple interest.
  • P is the principal amount.
  • R is the interest rate.
  • T is the time measured in years.

Making T the subject of formula, we have:

\(T = \frac{100S.I}{PR}\)

Substituting the given parameters into the formula, we have;

\(T = \frac{100 \times 21000}{8600 \times 3.95}\\\\T = \frac{2100000}{33970}\)

Time, T = 61.82 ≈ 60 years.

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