SOLUTION: how long it take an investment to quadruple in value if it earns 4% simple interest per year?

Algebra ->  Customizable Word Problem Solvers  -> Finance -> SOLUTION: how long it take an investment to quadruple in value if it earns 4% simple interest per year?      Log On

Ad: Over 600 Algebra Word Problems at edhelper.com


    

Question 841433: how long it take an investment to quadruple in value if it earns 4% simple interest per year?
Answer by jim_thompson5910(35256) About Me  (Show Source):
You can put this solution on YOUR website!
how long it take an investment to quadruple in value if it earns 4% simple interest per year?

A = P(1 + rt)

4P = P(1 + rt)

4P = P(1 + 0.04t)

4P/P = 1 + 0.04t

4 = 1 + 0.04t

4-1 = 0.04t

3 = 0.04t

0.04t = 3

t = 3/0.04

t = 75

It will take 75 years for the investment to quadruple.