in what simple interest rate will 7200 triple itself if invested for 10 yrs.
To determine the simple interest rate at which an amount triples itself over a specific period of time, we can use the formula for simple interest:
I = P * r * t
Where:
I = Simple Interest
P = Principal Amount (initial investment)
r = Interest Rate (in decimal form)
t = Time (in years)
In this case, we want the amount to triple itself, so the final amount (F) will be 3 times the initial investment (P):
F = P + I
3P = P + I
3 = 1 + (I / P)
We know the principal amount (P) is $7,200 and the time (t) is 10 years. Now we can rearrange the equation to solve for the interest rate (r):
3 = 1 + (I / P)
3 = 1 + (P * r * t) / P
3 = 1 + r * t
3 - 1 = r * t
2 = r * t
r = 2 / t
Substituting the given time (t = 10 years) into the equation:
r = 2 / 10
r = 0.2 or 20%
Therefore, the simple interest rate needed for an investment of $7,200 to triple itself in 10 years is 20%.