SOLUTION: How long will it take P dollars to quadruple itself at 14% simple interest?

Algebra ->  Customizable Word Problem Solvers  -> Finance -> SOLUTION: How long will it take P dollars to quadruple itself at 14% simple interest?      Log On

Ad: Over 600 Algebra Word Problems at edhelper.com


    

Question 221383: How long will it take P dollars to quadruple itself at 14% simple interest?
Answer by jim_thompson5910(35256) About Me  (Show Source):
You can put this solution on YOUR website!
A=P%2BPrt Start with the simple interest formula.


4P=P%2BP%2A0.14%2At Plug in A=4P (since we want the investment of P to quadruple) and r=0.14 (the decimal equivalent of 14%).


4P=P%281%2B0.14%2At%29 Factor out the GCF 'P'


4=1%2B0.14%2At Divide both sides by P.



4-1=0.14%2At Subtract 1 from both sides.


3=0.14%2At Combine like terms.


3%2F0.14=t Divide both sides by 0.14 to isolate 't'.


21.4285714285714=t Divide.


t=21.4285714285714 Rearrange the equation.


t=21.43 Round to the nearest hundredth.


So it will take about 21.43 years for an investment to quadruple with an interest rate of 14% (using simple interest).