Question

Rosa wants to Invest $1400 a savings account that pays 4.4% simple Interest. How long will take for this investment to double In value? Round your answer to the nearest tenth.

Answer 1

Answer: 31.8 years

Explanation:

The formula to calculate the simple interest is:

I = Prt

where:

I = Interest

P = Principal amount

r = Rate of interest

t = Time (in years)

We want to know how long it will take for the investment to double in value. That means the interest earned should be equal to the principal amount. So, we can write:

2P = P + I

Simplifying:

P = I

Now, we can substitute the values given in the problem:

1400 = 14000.044t

Simplifying:

t = 1400/(1400*0.044) = 31.82 years

Therefore, it will take approximately 31.8 years for the investment to double in value.