 How long will it take P35,000 to double at 12% simple interest?

To determine how long it will take for P35,000 to double at a 12% simple interest rate, we can use the simple interest formula:

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

Where:
- \( A \) is the final amount,
- \( P \) is the principal amount,
- \( r \) is the annual interest rate (as a decimal),
- \( t \) is the time in years.

In this case:
- \( P = 35,000 \) (initial amount),
- \( A = 70,000 \) (double the initial amount),
- \( r = 0.12 \).

### Substitute the known values:

\[
70,000 = 35,000(1 + 0.12 \times t)
\]

### Simplify and solve for \( t \):

1. Divide both sides by 35,000:
   \[
   2 = 1 + 0.12 \times t
   \]

2. Subtract 1 from both sides:
   \[
   1 = 0.12 \times t
   \]

3. Divide by 0.12:
   \[
   t = \frac{1}{0.12}
   \]

   \[
   t \approx 8.33 \text{ years}
   \]

### Final Answer
It will take approximately **8.33 years** (or 8 years and 4 months) for P35,000 to double at a 12% simple interest rate.

Would you like further details or have any other questions?

Here are some related questions you might find useful:

1. How would the time change if the interest rate was 10% instead of 12%?
2. What is the formula to calculate the time to double an investment using compound interest?
3. If the interest rate is 15%, how long will it take for P35,000 to double?
4. How does the doubling time differ between simple and compound interest?
5. What is the impact of compounding frequency on the time required to double an investment?

**Tip:** The "Rule of 72" is a quick way to estimate the doubling time for an investment under simple interest: divide 72 by the interest rate (in percentage) to get an approximate time in years.

Learn how to calculate the time it takes for an investment of P35,000 to double at a 12% simple interest rate. This problem covers the application of the Simple Interest formula A = P(1 + rt). Suitable for high school students studying financial mathematics.

Math Problem Statement

Solution

Ask a new question for Free

By Image

Math Problem Analysis

Mathematical Concepts

Formulas

Theorems

Suitable Grade Level

Related Recommendation