Question

6 brayden saves $1,500 at a yearly simple interest rate of 2.5%. how many years does it take for the amount he has saved to be double the original amount?

Explanation:

Step1: Define variables

Principal \( P = 1500 \), rate \( r = 2.5\% = 0.025 \), target amount \( A = 2P = 3000 \)

Step2: Simple interest formula

\( A = P(1 + rt) \)

Step3: Substitute values

\( 3000 = 1500(1 + 0.025t) \)

Step4: Solve for t

Divide both sides by 1500: \( 2 = 1 + 0.025t \)
Subtract 1: \( 1 = 0.025t \)
Divide by 0.025: \( t = \frac{1}{0.025} = 40 \)

Answer:

40 years