SOLUTION: How long will it take for a fund worth ₱12,500 to double if no withdrawals are made from the fund and an annual simple interest rate of 5% is credited to the fund?

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Question 1175601: How long will it take for a fund worth ₱12,500 to double if no withdrawals
are made from the fund and an annual simple interest rate of 5% is
credited to the fund?
Found 2 solutions by ikleyn, ewatrrr:
Answer by ikleyn(52879) About Me  (Show Source):
You can put this solution on YOUR website!
.

Simple interest


    f = p*(1 + nr)


f is the future value
p is the present value
r is the interest rate per year
n is the number of years.


in your problem:


    p = 12500
    f = 25000
    r = 5% = 0.05
    n = what you want to find.


formula becomes 


    25000 = 12500*(1 + 0.05n)


Solve this equation for n


    25000-12500 = 12500*0.05n

       12500    = 12500*0.05n

         1      = 0.05n

         n      = 1%2F0.05 = 20.


ANSWER.  20 years.

Solved.



Answer by ewatrrr(24785) About Me  (Show Source):
You can put this solution on YOUR website!

Hi
  Prt = I
 ₱12,500(.05)t = ₱12,500
             t = 1/.05 = 20 years
Wish You the Best in your Studies.