Finance/Business Math help Please

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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?

Guest Nov 27, 2018

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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

Guest · Answer 1 · 2018-11-27T01:42:54

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.

JohnyGotchaApples · Answer 2 · 2018-11-27T01:19:21

It would take a little less then 12 years.

otaku · Answer 3 · 2018-11-27T01:21:35

the equation will be 200,000*1.0825^x = 500,000, and x is about 11.6, so the answer is 12