document.write( "Question 1105315: Caitlin is a co-op student. She invested her work-term earnings of $10,000 at 4% simple interest, paid annually. She intends to use the money in a few years to take a dream vacation with a friend.
\n" ); document.write( "(a) How long will the investment take to grow to a future value of $12,000?
\n" ); document.write( "(b) Determine Caitlin’s rate of return. \n" ); document.write( "
Algebra.Com's Answer #720112 by stanbon(75887)\"\" \"About 
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Caitlin is a co-op student. She invested her work-term earnings of $10,000 at 4% simple interest, paid annually. She intends to use the money in a few years to take a dream vacation with a friend.
\n" ); document.write( "(a) How long will the investment take to grow to a future value of $12,000?
\n" ); document.write( "A(t) = P(1+rt)
\n" ); document.write( "12000 = 10,000(1+0.04t)
\n" ); document.write( "2000 = 10000*0.04t
\n" ); document.write( "0.2 = 0.04t
\n" ); document.write( "t = 5 years
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\n" ); document.write( "(b) Determine Caitlin’s rate of return.
\n" ); document.write( "Interest = 0.04*5*10000
\n" ); document.write( "I = 2000
\n" ); document.write( "Rate = 2000/5 = $400 per year
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\n" ); document.write( "Cheers,
\n" ); document.write( "Stan H.
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