If you invest $3,900 at a 7.83% simple annual interest rate, approximately how long will it take for you to...

Question

If you invest $3,900 at a 7.83% simple annual interest rate, approximately how long will it take for you to have a total of $10,000?
a. 12 years
b. 15 years
c. 20 years
d. 30 years
Please select the best answer from the choices provided
a. A
b. B
c. C
d. D

SnapAndSolve AI · Accepted Answer

To find the time it takes to reach $10,000 with simple interest, use the formula:

Simple Interest Formula: I = PRT

Where:

I is the interest earned.
P is the principal amount ($3,900).
R is the rate of interest (7.83% or 0.0783).
T is the time in years.

The total amount A is given by:

A = P + I

We want A = $10,000, so:

$10,000 = $3,900 + ($3,900 * 0.0783 * T)

Simplifying:

$10,000 = $3,900 + $305.37T

$6,100 = $305.37T

T = $6,100 / $305.37 ≈ 20 years

Answer: c. 20 years

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If you invest $3,900 at a 7.83% simple annual interest rate, approximately how long will it take for you to...

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