SOLUTION: how many years will it take for $2000 to double itself if is invested at 5% simple interest?

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Question 221018: how many years will it take for $2000 to double itself if is invested at 5% 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.


4000=2000%2B2000%2A0.05%2At Plug in A=4000 (double of the initial investment of $2000), P=2000, and r=0.05 (the decimal equivalent of 5%).


4000=2000%2B100%2At Multiply 2000 and 0.05 to get 100.


4000-2000=100%2At Subtract 2000 from both sides.


2000=100%2At Combine like terms.


2000%2F100=t Divide both sides by 100 to isolate 't'.


20=t Divide.


t=20 Rearrange the equation.


So it will take 20 years for an investment of $2000 to grow to $4000 with interest rate of 5% (using simple interest).