(adsbygoogle = window.adsbygoogle || []).push({}); 1. The problem statement, all variables and given/known data

An investment is made at 12.5% annual simple interest. Find the number of years it will take for the cumulative value of the interest to equal the original investment?

2. Relevant equations

V=P(1+rt)

Where V= interest on Amount

P = Principal amount

r= interest rate

t= number of years for which amount is invested

3. The attempt at a solution

Simple Interest formula is:

V=P(1+rt) Let p =10 & t=1

V= 10(1+12.5) = 135

In just one year the interest obtained is more than the Principal value. Some body please guide me. What I understand is that, I have to find the number of years in which the interest obtained & added (with previous years’ interest becomes equal to the Principal).

Zulfi.

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# Homework Help: Simple Interest: Number of Years

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