SOLUTION: Simple Interest For $1000 to grow to more than $1500 in two years, what must the simple interest rate be? I really need help with the set up and steps on this please! Thanks!

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Question 180634: Simple Interest
For $1000 to grow to more than $1500 in two years, what must the simple interest rate be?
I really need help with the set up and steps on this please! Thanks!
Answer by Fombitz(32388) About Me  (Show Source):
You can put this solution on YOUR website!
First year
N%5B1%5D=1000%2A%281%2BI%29
Second year
N%5B2%5D=N%5B1%5D%2A%281%2BI%29
N%5B2%5D=1000%2A%281%2BI%29%5E2=1500
%281%2BI%29%5E2=1.5
%281%2BI%29=sqrt%281.5%29
I=sqrt%281.5%29-1
or approximately
I=1.225-1=0.225
You would need an interest rate of 22.5% to take $1000 to $1500 in two years.