Question

Suppose you wanted to invest $2500 with a small company owned by a friend of yours that pays 12.2% simple interest on the investment. How long would it take the money to grow to $3500 in this case? Show your work.

Answer 1

We have the following equation

$3500=2500+2500\cdot0.122\cdot t$

where the t is the time we want to know

$\begin{gathered} 1000=2500\cdot0.122\cdot t \\ 1000=305t \\ t=\frac{1000}{305}=3.2786 \end{gathered}$

so we have to wait at least 3 months to our money to increase to 3500