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25 July, 16:15

About how long will it take Levi's investment of $350 to double if it earns 14.5% simple interest?

A.

5 years

B.

6 years

C.

7 years

D.

8 years

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Answers (1)
  1. 25 July, 19:29
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    Initial investment = $350

    proceed = 2 x $350 = $700

    Interest = $700 - $350 = $350

    I = prt; where I = $350, p = $350, r = 14.5% = 0.145

    t = I/pr = 350 / (350 x 0.145) = 350/50.75 ≈ 7 years.
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