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11 September, 11:03

Diego deposits $4,200 into a savings account that pays 5% simple interest. He decides not to touch the money until it doubles. How long will Diego have to keep the money in this account?

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  1. 11 September, 15:02
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    Principal money deposited by Diego into the savings account = $4200

    Final amount of money taht Diego will get = (4200 * 2) dollars

    = 8400 dollars

    Percentage of simple interest given = 5%

    Let us assume that after x years the money is going to double.

    Then

    Amount = Principal (1 + rate of Interest * Time)

    8400 = 4200[ 1 + (5/100) * x]

    8400/4200 = 1 + (x/20)

    2 = 1 + (x/20)

    2 - 1 = x/20

    x/20 = 1

    x = 20

    So after 20 years the money will get doubled.
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