SOLUTION: How long will it take $700 to double itself at 7% simple interest?

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Question 342776: How long will it take $700 to double itself at 7% 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.


1400=700%2B700%2A0.07%2At Plug in A=1400 (double the amount of $700), P=700, and r=0.07 (the decimal equivalent of 7%).


1400=700%2B49%2At Multiply 700 and 0.07 to get 49.


1400-700=49%2At Subtract 700 from both sides.


700=49%2At Combine like terms.


700%2F49=t Divide both sides by 49 to isolate 't'.


14.2857142857143=t Divide.


t=14.2857142857143 Rearrange the equation.


t=14.29 Round to the nearest hundredth.


So it will take about 14.29 years for an investment of $700 to grow to $1400 with an interest rate of 7% (using simple interest).


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Jim