10
QuizMultiple Choice

Compound Interest — Unit test

Question 10 • Academy- Financial Algebra A 27

If you invest $8,600 at a 3.95% simple annual interest rate, approximately how long will it take for you to have a total of $21,000?

Answer
A
25.3 years
B
36.5 years
C
45.9 years
D
60.7 years

Explanation

For simple interest, use A = P(1 + rt), where A is the final amount and P is the initial investment. Solving for time gives t = (A/P − 1)/r = (21,000/8,600 − 1)/0.0395 ≈ 36.5 years, so the best answer is 36.5 years.

AI-written and checked against the verified answer.

Previous
Next