Question

Bill Roe visited his local bank to see how long it will take for $1,000 to amount to $1,900 at a simple interest rate of 12 1/2 percent. Could you provide Bill with the solution to his problem in years?

Answer 1

T=((1,900÷1,000)−1)÷0.125
T=7.2 years

Answer 2

7.2 years.

Explanation:

Bill Roe visited his local bank to see how long it will take for $1,000 to amount to $1,900 at a simple interest rate of
`12(1)/(2)`%

Formula of simple interest

A = P(1+rt)

A = Future amount

P = principal amount

t = time

r = rate of interest

1,900 = 1,000(1 + 0.125t)

1,900 = 1,000 + 125t

125t = 1900 -1000

125t = 900

t =
`(900)/(125)` = 7.2 years

It will take 7.2 years.