Suppose that an investment of $13,000 has grown in value at a rate of 9% per year. If the current value is $16,835.38, then how many years have passed? a. 4 c. 3 b. 4.5 d. 2

Question

Mathematics

Damian Shelton

12 April, 22:53

Suppose that an investment of $13,000 has grown in value at a rate of 9% per year. If the current value is $16,835.38, then how many years have passed? a. 4 c. 3 b. 4.5 d. 2

+5

Answers (1)

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Braeden Wheeler · Answer 1

Using simple interest formula,

I = PNR

I = Interest = current value - initial value = 16835.38 - 13000 = 3835.38

P = Principal amount = 13000

N = number of years which we need to find.

R = rate of interest = 9% = 0.09.

So,

3835.38 = 13000*N*0.09

N = 3835.38 / (130*9) = 3.278

so approximately 3 years have passed.