How long does it take for $5000 to become $10,000 at a simple interest rate of r = 18% using ordinary interest (Banker's Rule)?
A)5 years,203 days
B)5 years,200 days
C)5 years,175 days
D)5 years,173 days

Question

Quizplus · Accepted Answer

Using the Banker's Rule, we need to add the additional days to the number of years, which gives:

Time in Years + (Interest/100 x Time in Years) = Total Interest/Amount x 365

Substituting the given values, we get:

5 + (18/100 x 5) = 5000/5000 x 365
5.9 = 1

Thus, the answer is 5 years and 175 days. Therefore, the best choice is C.

How Long Does It Take for $5000 to Become $10,000