Answer to Question #193107 in Financial Math for Barent

Question

An investment of R20 000 accumulated to R45 200. If the applicable simple interest rate is 12% per year, then the time under consideration is

1.     10,50 years.

2.     15,12 years.

3.     7,19 years.

4.     4,65 years.

5.     3,25 years.

Answer 1

$Interest=principal ×rate ×time$

$Interest=amount-principal$

Interest$=45200-20000=25200$

$25200=20000×\frac{12}{100}×t$

$25200=2400t$

$t=10.50\space years$

Hence option 1 is correct.