Asked by Trent
A charity received a donation of $20,500, and invested it at a 6% simple interest rate.
A. How long would it take for the charity to earn $5, 535 interest?
B. What is the minimum number of full years the charity should allow the investment to mature to double the original investment?
A. How long would it take for the charity to earn $5, 535 interest?
B. What is the minimum number of full years the charity should allow the investment to mature to double the original investment?
Answers
Answered by
Steve
After n years, the interest is prn. So, you want
(20500)(.06)n = 5535
n = 4.5 years
To double, you need .06n=2, or n=33.3 years
(20500)(.06)n = 5535
n = 4.5 years
To double, you need .06n=2, or n=33.3 years
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