Question

If you invest $8,600 at a 3. 95% simple annual interest rate, approximately how long will it take for you to have a total of $21,000? a. 25. 3 years b. 36. 5 years c. 45. 9 years d. 60. 7 years.

Answer 1

The time needed to reach the amount of $21000 will be 36.5 years.

What will be the time to reach the amount $21000?

It is given that

Principle = $8600

Rate = 3.95%

Total amount = $21000

So the total interest will be = Amount -principle = 21000-8600=$12400

So by using the formula

$SI = \dfrac{P\times R\times T}{100}$

Here p = principle

R= Rate of interest

T= time

SI= interest amount

Now putting the values

$12400= \dfrac{8600\times3.95\times T\time}{100}$

$T=\dfrac{12400\times100}{3.95\times8600}$

$\rm T=36.5 \ years$

Thus the time needed to reach the amount of $21000 will be 36.5 years.

To know more about simple interests follow

https://brainly.com/question/2294792