SOLUTION: Theron wants to save $5,000. If he has $4,000 and invests it at 5% simple interest, how long will it take him to obtain $5,000?

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Question 605820: Theron wants to save $5,000. If he has $4,000 and invests it at 5% simple interest, how long will it take him to obtain $5,000?

Answer by josmiceli(19441) About Me  (Show Source):
You can put this solution on YOUR website!
The simple interest formula is:
+A+=+P%2A%28+1+%2B+tr+%29+
where A = amount after t years
+5000+=+4000%2A%28+1+%2B+t%2A.05+%29+
+5000%2F4000+=+1+%2B+.05t+
+.05t+=+5%2F4+-+4%2F4+
+.05t+=+1%2F4+
+t+=+.25%2F.05+
+t+=+5+
It will take 5 years