Question

How long would it take for sum money to become $1\frac{3}{4}$ of itself at $3.75\%$ simple interest per month?

Answer 1

we have the formula

$amount$ = $principal(1+rate\ast time)$

let $principal=x$ so $amount=1.75x$ according to question

rate $r$=$0.0375$ and time =$t$

substituting the values in the formula , we have

$1.75x=x(1+0.0375\ast t)$

$\frac{0.75}{0.0375}=t$

$t=20$

So it would take 20 years for an aamount to become 1.75 times itself at the given rate of interest.