how many years does it take an investment of $2000 to grow to $5000 in value if the annual simple interest rate is 5%

Question

how many years does it take an investment of $2000 to grow to $5000 in value if the annual simple interest rate is 5%

Answer 1

A = p(1 + rt)

5000 = 2000(1 +0.05t)

2.5 = 1 + 0.05t

1.5 = 0.05t

30 = t

 

Answer 2

$2000 times 5% equals $100 per year simple interest. Since you need the investment to realize a gain of $3000 from $2000 to $5000 it would take 30 years at $100 per year to gain $3000.