Question
A certain sum is invested at a simple interest rate of
12% per annum for a certain period of time. If the sum becomes four times the principal at the end of the period, what is the duration of the investment?Solution
Given: A = 4P r = 12% = 0.12 4P=P(1+0.12t) Solve for t- 4 = 1+0.12t 3 = 0.12t t =3/0.12 t =300/12 =25 years
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