How long does it take for $6,000 invested at 9% annual simple interest to be worth $10,500? Round your answer to two decimal places.
A) 30.56 years
B) 83.33 years
C) 8.33 years
D) 4.76 years
E) 0.83 years

Question

How long does it take for $6,000 invested at 9% annual simple interest to be worth $10,500? Round your answer to two decimal places. ​
A) 30.56 years
B) 83.33 years
C) 8.33 years
D) 4.76 years
E) 0.83 years

Quizplus · Accepted Answer

Using the formula for simple interest: 
I = Prt 
Where I is the interest, P is the principal, r is the interest rate, and t is the time in years.

We can solve for t: 
t = I / Pr

Given: 
P = $6,000 
r = 9% = 0.09 
I = $10,500 - $6,000 = $4,500

Plugging in the values: 
t = $4,500 / ($6,000 * 0.09) 
t = $4,500 / $540 
t = 8.33

Therefore, it will take 8.33 years for $6,000 invested at 9% annual simple interest to be worth $10,500. The best choice is C.

How Long Does It Take for $6,000 Invested at 9