Question

A Lump sum of money is invested at 10% simple interest rate. How long it will take to increase by
50%?​

Answer 1

Answer:

The time it'll take the investment to increase by 50% is 5 years.

Step-by-step explanation:

Suppose the amount invested is $10,000

The interest rate is 10%, So annually you'll receive (10,000×10%)=$1000 in terms of interest income.

The 50% increase of the amount invested is:

(x-10,000)/10,000=50%

x-10,000=5,000

x=$15,000

We need $5,000 more to increase the amount invested by 50% & we receive $1,000 every year

So to calculate the time it takes when the investment will increase by 50% is:

5000/1000= 5 years