Asked by Zayn

How long will it take for an investment of $5000 to double if it is invested at 5% p.a. simple interest?


Been stuck on this and need help thanks

Answers

Answered by Reiny
So the interest on your $5000 should amount to $5000
5000(.05)t = 5000
t = 1/.05 = 20

or,

interest for 1 year = 5000(.05)(1) = $250
Since that stays constant (simple interest),
it would take 5000/250 or 20 years
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