How many years will it take for 2000 to double at a simple interest rate of 8%? explain how you found your answer

A = P (1+RT)

A (Future) = 2000 (2) = 4000

P (Principal) = 2000

R (Rate) = 8% =.08

T (Time) = Unknown

Create the equation:

4000 = 2000 (1+.08t)

Distribute the 2000:

4000 = 2000 + 2000 (.08t)

Multiply the 2000 (.08t):

4000 = 2000 + 160t

Subtract the 2000 from both sides:

2000 = 160t

Divide by 160:

12.5

Answer:

It will take 12.5 years (12 years and 6 months) to double the 2000 to double.