Answer
7 years
Explanation
Given:
Principal, P = $10,000
Rate, R = 6.75%
Amount, A = $15,000
What to find:
The years will it take the investment to reach $15,000 in value.
Step-by-step solution:
You need to first calculate the total interest on the investment using;
Interest, I = Amount, A - Principal, P
Interest, I = $15,000 - $10,000
Interest, I = $5,000
The final step is to find the years it takes the investment to reach $15,000 in value using simple interest formula.
[tex]\begin{gathered} S.I=\frac{T\times P\times R}{100} \\ \\ \Rightarrow T=\frac{S.I\times100}{P\times R} \end{gathered}[/tex]Putting the values of the parameters into the formula, we have;
[tex]\begin{gathered} T=\frac{5000\times100}{10000\times6.75}=\frac{500,000}{67,500}=7.407\text{ }years \\ \\ To\text{ }the\text{ }nearest\text{ }number\text{ }of\text{ }years, \\ \\ T=7\text{ }years \end{gathered}[/tex]Therefore, it will take 7 years for the investment to reach $15,000 in value.
