Answer to Question #267614 in Financial Math for Luh

Question

A deposit of R220426 is made into a simple interest bearing account that earns 6.29% per annum. How long (in years) will it take the money to be three time as much? Round off to 2 decimals

Answer 1

How long will it take for the money to be 3 times;

Simple interest is given by;

$A=P(1+rt)$

For our question,the amount will be 3A.

$3(220426)=220426(1+0.0629t)$

$661278-220426=13864.795t$

$t=31.80$ years