SOLUTION: How many months are required for $2,500 to grow to $3,300 at 16% simple interest?

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Question 607688: How many months are required for $2,500 to grow to $3,300 at 16% 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.


3300=2500%2B2500%2A0.16%2At Plug in A=3300, P=2500, and r=0.16 (the decimal equivalent of 16%).


3300=2500%2B400%2At Multiply 2500 and 0.16 to get 400.


3300-2500=400%2At Subtract 2500 from both sides.


800=400%2At Combine like terms.


800%2F400=t Divide both sides by 400 to isolate 't'.


2=t Divide.


t=2 Rearrange the equation.


So it will take 2 years (or 24 months) for an investment of $2500 to grow to $3300 with an interest rate of 16% (using simple interest).
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