Question

How much time will a $500 investment need to earn $100 in interest at a rate of 10% per year?

Answer 1

simple or compounded interest?

Answer 2

simple is just: A = Prt
100 = 500(.10) t

solve for t

Answer 3

if its compounded once a year ... its a little more complex but:

B = B(1+r)^t

600 = 500(1.10)^t

6/5 = 1.10 ^t

ln(6/5) = t ln(1.10)

ln(6/5)/ln(1.10) = t

Answer 4

ok thanx so much

Answer 5

simple interest is 2 years
compounded is 1.9 years

so its prolly a simple interest calculation

Answer 6

i think it is

Answer 7

:) good luck

Answer 8

thanx