Question

A savings account earns 2.7% yearly interest. Which equation shows how many years, t, it will take for the account to double?

Answer 1

1.027t = 2

Explanation:

Given that :

Saving account earns 2.7% interest yearly

The number it will take for the account to double

Let

Number of years = t

Interest earned yearly = 2.7% = 0.027

Amount = p(1 + rt)

Where P = principal

R = rate ; t = time in years, A = final amount

If p = 1 ;

For account to double,

Final amount = 2 * principal (p)

final amount = 2 * 1 = 2 ; hence, Final amount = 2

2 = 1(1 + 0.027t)

2 = 1 + 0.027t

2 = 1.027t