Answer:
It will take 23 years and 10 months (23.8) approximately to have US$ 6,000 in this investment.
Step-by-step explanation:
1. Let's review the information given to us to answer the question correctly:
Initial principal = US$ 3,000
Final amount = US$ 6,000
Interest rate = 4.2% simple interest = 0.042
2. How many years will it take your investment to have a balance of $6000?
Let's recall that the formula of the simple interest is:
Final amount = Initial principal * (1 + Interest rate * Time in years)
Replacing with the real values, we have:
6,000 = 3,000 * (1 + 0.042 * Time in Years)
(1 + 0.042 * Time in Years) = 6,000/3,000
(1 + 0.042 * Time in Years) = 2
0.042 * Time in Years = 2 - 1
0.042 Time in Years = 1
Time in Years = 1/0.042 = 23.8 (Rounding to the the tenths place)
It will take 23 years and 10 months (23.8) approximately to have US$ 6,000 in this investment.
