Theron wants to save $5,000. If he has $4,000 and invests it at 5% simple interest, how long will it take him to obtain $5,000?
A) $200$ days
B) $400$ days
C) $6$ years
D) $5$ years
E) $7$ years

Question

Quizplus · Accepted Answer

To find the time required to reach $5,000 with $4,000 invested at 5% simple interest, use the formula for simple interest: $I = P \times r \times t$. Here, $I = 5,000 - 4,000 = 1,000$, $P = 4,000$, and $r = 0.05$. Solving for $t$, we get $t = \frac{1,000}{4,000 \times 0.05} = 5$ years.

Theron Wants to Save $5,000 200200200 Days B) 400400400 Days C) 666 Years D)

Theron Wants to Save $5,000 $200$ Days
B) $400$ Days
C) $6$ Years
D)