How many days would it take for $9,500 to grow to $10,000 at 7%?
A) 75
B) 188
C) 261
D) 365
E) 275

Question

Quizplus · Accepted Answer

To find the number of days it would take for $9,500 to grow to $10,000 at an annual interest rate of 7%, we can use the formula for simple interest: $I = Prt$, where $I$ is the interest earned, $P$ is the principal amount, $r$ is the annual interest rate (as a decimal), and $t$ is the time in years. We rearrange the formula to solve for $t$: $t = \frac{I}{Pr}$.First, we calculate the interest earned, $I = \$10,000 - \$9,500 = \$500$.Next, we convert the annual interest rate to a decimal: $r = 7\% = 0.07$.Then, we plug the values into the rearranged formula: $t = \frac{\$500}{\$9,500 \times 0.07} = \frac{500}{665} \approx 0.7519$ years.Finally, to convert years to days, we multiply by 365: $0.7519 \times 365 \approx 274.44$ days, which rounds to 275 days.

How Many Days Would It Take for $9,500 to Grow