How long will it take $600 to double itself at 12% simple interest?
I=p*r*t
p=600
fv=1200
I=1200-600=600
r=12%=0.12
t=? years
t= 600/(600*0.12)
t=8.33 years
What is this ? I'm confused !
In one year we gain .12(600) or $72 in interest
let the number of years needed to double our 600 to 1200 be t
600 + 72t = 1200
72t = 600
t = 600/72 = 25/3 years or 8 1/3 years
To determine how long it will take for $600 to double at a 12% simple interest rate, you can use the formula for simple interest:
Simple Interest = Principal x Rate x Time
In this case, the principal is $600, and we want to find the time it takes for the amount to double, so the interest earned would be $600.
$600 = $600 x 0.12 x Time
Simplifying the equation:
1 = 0.12 x Time
Divide both sides of the equation by 0.12:
1 / 0.12 = Time
Time = 8.33 years (approximately)
Therefore, it will take approximately 8.33 years for $600 to double at a 12% simple interest rate.