SOLUTION: Michelle Payne deposited $8,000 in a savings account paying 6.25% simple interest. How long will it take for her investment to amount to $10,000?

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Question 935065: Michelle Payne deposited $8,000 in a savings account paying 6.25% simple interest. How long will it take for her investment to amount to $10,000?

Found 2 solutions by josmiceli, jim_thompson5910:
Answer by josmiceli(19441)   (Show Source): You can put this solution on YOUR website!

where is the time in years




It will take 4 years
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check:




OK


Answer by jim_thompson5910(35256)   (Show Source): You can put this solution on YOUR website!
Use the formula A = P*(1+r*t) where in this case

A = 10,000
P = 8,000
r = 0.0625

and solve for t
	A = P*(1+r*t)
	10000 = 8000*(1+0.0625*t)
	10000/8000 = 1+0.0625*t
	1.25 = 1+0.0625*t
	1.25 - 1 = 0.0625*t
	0.25 = 0.0625*t
	0.0625*t = 0.25
	t = 0.25/0.0625
	t = 4


It will take 4 years
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