Question

Suppose you loan $320 to a friend and charge them 11% annual interest. If they don't pay any back, how many years will it take for them to owe you $2,000? Round your answer to the nearest hundredth (2 places after the decimal).​

Answer 1

Step-by-step explanation:

For them to owe you a total of$2000 then an interest of $2000-320=$1680 must have accrued over the time T

T=$1680×100/320×11

T=47.7272...≈47.73 to the nearest hundredth

Proof,

Interest after 47.7262...years which is converted to 525/11 years

=($320×11×525/11)/100

=$1680

therefore total amount which will be owed at that time =principal+interest accrued

=$320+1680=$2000