How long will it take 7500 to triple itself if it is invested at 7% simple interest?
Po + Po*r*t = 3*7500 = $22,500.
7500 + 7500*0.07*t = 22,500,
525t = 22500 - 7500 = 15000,
t = 28.6trs.
Correction: t = 28.6 Years.
To determine how long it will take for an amount to triple itself at a given interest rate, we can use the formula for simple interest:
I = P * r * t
Where:
I = Interest earned
P = Principal amount (initial investment)
r = Interest rate
t = Time (in years)
In this case, we know that the principal amount (P) is $7500 and we want to triple it, so the final amount will be 3 times the principal amount. Therefore, the final amount (A) will be:
A = P + I = 3P
Substituting the values into the formula, we have:
3P = P * r * t
Simplifying the equation:
3 = r * t
Now, we can determine the time it will take for the investment to triple by rearranging the equation:
t = 3 / r
Given that the interest rate (r) is 7% (or 0.07 as a decimal), we can calculate the time (t):
t = 3 / 0.07
t ≈ 42.857 years
Therefore, it will take approximately 42.857 years for $7500 to triple itself at a 7% simple interest rate.