Question

Sally wanted to calculate the number of years she needed to invest R1000 for in order to accumulate R2500. She has been offered a simple interest rate of 8.2% p.a. How many years will it take for the money to grow to R2500

Answer 1

Answer:

It takes around 19 years to accumulate  R1000 to R2500.

Step-by-step explanation:

Initial sum(P) = R1000

Amount Required(A) = R2500

Rate of Interest(R) = 8.2% p.a.

SI = A-P = R2500-1000 = R1500

Now,

SI = P * T * R /100

R1500 = R1000 * T * 8.2 /100

R1500 * 100 / R1000 = T *8.2
150 / 8.2 = T
18.29 = T

Hence, in about 19 years, R1000 accumulates to R2500

{In 19 years, 1000 accumulates to 2558}