Question
A certain sum is invested at a simple interest rate of
10% per annum for a certain period. If the sum becomes five times the principal at the end of the period, what is the duration of the investment?Solution
Given: A = 5P r = 10% = 0.10 5P=P(1+0.10t) Solve for t- 5 = 1+0.10t 4 = 0.10t t =4/0.10 t =400/10 =40 years
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