In How Many Years Will An Investment Of 25000 Accumulate To 45000 If Money S Worth 4.5% Simple Interest

In how many years will an investment of 25000 accumulate to 45000 if money s worth 4.5% simple interest

Answer:

The answer to this problem is about 18 years.

Step-by-step explanation:

Simple Interest is a fixed percentage of the principal multiplied by the life of loan.

The formula for the future amount of money earned after n years is show below

$F = P(1+in)$

Using this formula we can now solve for the number of years

$45000 = 25000(1+0.045n)\\\frac{45000}{25000}-1 = 0.045n\<br> = \frac{0.8}{0.045}\<br> = 17.78 years$ or approximately 18 years.

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