Question

If $5,000.00 is invested at 17% annual simple interest, how long does it take to be worth $21,150.00.

It will take
years (round to the nearest whole).

Answer 1

To find the number of years it takes for an investment to grow to a certain value at a certain interest rate, you can use the formula:

n = (future value - principal) / (principal * interest rate)

Where:

n = number of years

future value = the final value of the investment

principal = the initial amount invested

interest rate = the annual interest rate as a decimal

Plugging in the given values:

n = (21150 - 5000) / (5000 * 0.17)

n = 16.65

Rounding to the nearest whole number, it would take approximately 17 years for the investment to be worth $21,150.00.