Problema Solution
The value of an investment at simple intrest is given by the formula A= P+Prt. A is the final value after t years at the interest rate r (as a decial) if the initial amount P is invested. How long must $200 be invested at 8% interest to reasch a value of $248?
Answer provided by our tutors
P = $200
r = 0.08
A = $248
t = ?
A= P+Prt
P + Prt = A
200 + 200*0.08*t = 248
by solving the equation we find
t = 3 years
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the money should be invested in a time period of 3 years.