Question

Terrance has $100 that he can invest in a savings account. His bank is willing to pay interest to his account at a rate of 0.04. How long will Terrance need to leave the money in the account if he wants to earn $100 in interest, doubling his money

Answer 1

is there any answer choices?

Answer 2

sorry.. are there any...................

Answer 3

Is this simple interest or compound interest?

Answer 4

Yea
25yr
10yr
40yr

Answer 5

Simplest interest

Answer 6

5yr is also a choice

Answer 7

Simple interest means he earn 4% interest on the original 100$ each year.
He gets 0.04 x 100 = 4$ per year

Answer 8

Ok. The formula for simple interest is:

\(I = prt\)

where
I = the interest earned,
p = the principal amount
r = interest rate per year
t = time in years

In your case, you want the interest earned, I, to be $100.
The principal amount (the amount deposited or invested) is $100.
The interest rate per year is 0.04.Your only unknown is t, the time in years.

Substitute the 3 known amounts in the formula, and solve for the unknown.

Answer 9

Umm I think I get it so do you no the answer

Answer 10

I = prt

100 = 100 * 0.04 * t

Multiply 100 and 0.04 together:

100 = 4t

Divide both sides by 4

25 = t