Asked by lathan





How many years will it take for $2000 to double at a simple interest rate of 8%? Explain how you found your answer.

Answers

Answered by oobleck
just find t such that 1.08^t = 2
The starting amount does not matter.
Just FYI, read up on "The Rule of 72."
Answered by Reiny
It said, at a simple interest of 8%.
So you are generating $2000 interest in order to double your investment

I = PRT
2000 = 2000(.08)t
t = 12.5
Notice that this differs quite a bit from the answer oobleck obtains using
compound interest.
The "rule of 72" applies to compound interest.
Answered by oobleck
sorry. my bad. Way to watch, Reiny.
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