Question

(a) At a simple interest rate of 12% per year, determine how long it will take $5000 to increase to twice as much. (b) Compare the time it will take to double if the rate is 20% per year simple interest.

Answer 1

Explanation:

10000=5000(1.12^x)

2=1.12^x

(log_1.12)(2)=x

x= about 6.1163

10000=5000(1.2^x)

2=1.2^x

(log_1.2)(2)=x

x= about 3.8019

compare them by saying like 20% will be 6.12/3.8 times faster