Compound Interest

Question

Jim wants to invest $2300 in a savings account that pays 6% simple interest. How long will it take for this investment to double in value? What percent of the original amount is the interest? Round your answer to the nearest tenth. Show all work please.

Answer 1

2,300 at 6% double when?

at simple interest with no compounding

1/.06 = 16 2/3 years

16 years and 8 months

doubling time is the same regardless whether it's 2300 or any other amount

2300 x .06 = 138 interest in 1 year

2300//138 = 16 2/3

try any other amount

100 x .06 = 6

100/6 = 50/3 = 16 2/3

what percent of the original amount = interest? 100% exactly, 2300 +2300= 4600 = double the original amount

or the interest = 50% exactly of the total amount after it's doubled