Problema Solution
Cynthia invests $ 4850 at 7.6% a simple interest. If she wants the money to increase to $8000. How long will she need to invest her money?
Answer provided by our tutors
for simple interest we have the following equation:
interest = principal * rate * time
an increase from 4850 to 8000 represents how much interest:
8000-4850 = 3150
for our problem we now know the following values:
interest = 3150
principal = 4850
rate = 0.076
let 't' represent the time of investment in years:
3150 = 4850 * 0.076 *t
solving for 't' we have:
t = 15750/1843
t = 8.5458
Cynthia will need to leave the money invested for approximately 8.6 years