Sandra invests $5,000 in a savings account that pays 5% simple interest. How many years will it take for the account to grow to $15,000, if she makes no withdrawals or deposits?

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Answer 1 · 2016-11-09T11:06:27

$40" "$ years

The formula for SI is: $SI = (PRT)/100$

To have an account of $$15,000" "(A)$ means that she needs to have earned $$10,000$ interest on her investment of $$5,000" "(P)$

In simple interest, interest is calculated only on the initial amount.

$SI = (PRT)/100 = 10000$

$(5000xx5xxcolor(blue)(T))/100 = 10000$

$color(blue)(T)= (10000 xx100)/(5000xx5)$

$T = 40$ years

$rarr$ No one would invest at simple interest!