At a simple interest rate of 10% per year, determine how long will it take $10,000 to increase to 4 times as much. Compare the time it will take to double if the rate is 20% per year simple interest.
At an interest rate of 10%, it will take_____ years for the amount to increase 4 times as much.It will take______ years for the amount to double at an interest rate of 20%.
RATE OF INTEREST = 10%
PRINCIPAL = 10000
SO INTEREST EVERY YEAR = 10000 X 10% = 1000
NOW WE NEED 4 TIMES MORE THAN PRINCIPAL, SO INTEREST SHOULD BE 3 TIMES OF PRINCIPAL, WHICH IS EQUAL TO = 10000 X 3 = 30000
INTEREST PER YEAR = 1000
SO IT WILL TAKE 30 YEARS [30000/1000]
ANSWER 1 : 30 YEARS
NOW IF INTEREST RATE = 20%
INTEREST PER YEAR = 10000 X 20% = 2000
NOW WE NEED DOUBLE THE PRINCIPAL = 20000, SO INTEREST TO BE EARNED = 20000 -10000 = 10000
INTEREST PER YEAR = 2000
SO IT WILL TAKE 5 YEARS [10000/2000 = 5 YEARS] TO EARN INTEREST OF 10000
ANSWER 2 : 5 YEARS [[Thumbs up please]
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