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How long will it take $200,000 to amount to half a million dollars if the simple interest rate is 8.25% per annum?

 Nov 27, 2018

Best Answer 

 #3
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Remember that he /she says "simple interest rate of 8.25%"

 

$500, 000 - $200,000 = $300,000 Simple interest that must be earned.

$200,000 x 0.0825 = $16,500 simple interest earned per year.

$300,000 / $16,500 = 18.18 years for $200,000 to become $500,000.

 Nov 27, 2018
 #1
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It would take a little less then 12 years. cheeky

 Nov 27, 2018
 #2
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the equation will be 200,000*1.0825x = 500,000, and x is about 11.6, so the answer is 12blush

 Nov 27, 2018
 #3
avatar
+1
Best Answer

Remember that he /she says "simple interest rate of 8.25%"

 

$500, 000 - $200,000 = $300,000 Simple interest that must be earned.

$200,000 x 0.0825 = $16,500 simple interest earned per year.

$300,000 / $16,500 = 18.18 years for $200,000 to become $500,000.

Guest Nov 27, 2018

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