Question

How long will it take for a sum of $4,599 invested at the rate of 7% simple interest per annum to reach $5,505.50

Answer 1

Answer:

2.816 years (approximately 2 years 10 months)

Step-by-step explanation:

Simple Interest Formula

A = P(1 + rt)

where:

• A = final amount
• P = principal
• r = interest rate (in decimal form)
• t = time (in years)

Given:

• A = $5,505.50
• P = $4,599
• r = 7% = 0.07

Substitute the given values into the formula and solve for t:

$\implies \sf 5505.50 = 4599(1 + 0.07t)$

$\implies \sf \dfrac{5505.50}{4599}=1 + 0.07t$

$\implies \sf 0.07t=\dfrac{5505.50}{4599}-1$

$\implies \sf 0.07t=\dfrac{259}{1314}$

$\implies \sf t=\dfrac{259}{1314\cdot 0.07}$

$\implies \sf t=2.815829528$

Therefore, it will take 2.816 years (approximately 2 years 10 months).

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