Michelle Payne deposited 20000 in a savings account paying 6.25% simple interest. How long in years will it take for her investment to amount to 30000
We can use the formula for simple interest to determine how long it will take for Michelle's investment to amount to $30,000:
Simple Interest = Principal x Rate x Time
In this case:
Principal = $20,000
Rate = 6.25% or 0.0625
Amount = Principal + Simple Interest = $30,000
Simple Interest = $20,000 x 0.0625 x Time
We want to find the time it will take for the investment to amount to $30,000:
$20,000 + $20,000 x 0.0625 x Time = $30,000
$20,000 x (1 + 0.0625 x Time) = $30,000
1 + 0.0625 x Time = $30,000 / $20,000
1 + 0.0625 x Time = 1.5
0.0625 x Time = 0.5
Time = 0.5 / 0.0625
Time = 8
Therefore, it will take Michelle 8 years for her investment to amount to $30,000 at a simple interest rate of 6.25%.