How many years would it take for money to triple in value at 20% per year simple interest?
To calculate the number of years it would take for money to triple in value at a 20% annual simple interest rate, we can use the formula for simple interest:
I = P * r * t
Where:
I is the interest earned
P is the principal (initial amount of money)
r is the interest rate (expressed as a decimal)
t is the time (in years)
In this case, we want to find out when the money will triple its value, so the interest earned (I) would be equal to twice the principal amount (2P).
2P = P * 0.2 * t
Simplifying the equation, we can cancel out P from both sides:
2 = 0.2 * t
Now, isolate t by dividing both sides of the equation by 0.2:
t = 2 / 0.2
t = 10 years
Therefore, it would take 10 years for the money to triple in value at a 20% simple interest rate.