61
QuizMultiple Choice

Simple Interest

Question 61 • (Kapuschinsky)WCA 3424 Consumer Applications 1st nine weeks 26-27

If you invest $3,900 at a 7.83% simple annual interest rate, approximately how long will it take for you to have a total of $10,000?

Answer
A
12 years
B
15 years
C
20 years
D
30 years

Explanation

With simple interest, the total is A = P(1 + rt), where P = $3,900 and r = 0.0783. Solving for time gives t = (10,000 ÷ 3,900 − 1) ÷ 0.0783 ≈ 20 years. So it will take approximately 20 years, choice C.

AI-written and checked against the verified answer.

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