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    nkp6129's Avatar
    nkp6129 Posts: 1, Reputation: 1
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    #1

    Feb 19, 2008, 06:53 PM
    How to calculate time of investment growth?
    If someone deposited $8,000 into a savings account paying 5.25% ordinary interest, how long would it take for the investment to grow into $10,000? What is the equation for this... this is for a business math class.
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #2

    Feb 23, 2008, 10:57 PM
    What do they mean by "ordinary" interest? Does that mean non-compounding, like simple interest? I'm assuming simple interest in my answer. If this is not correct, please post back.

    It's easiest to start by figuring out what interest is. If you put in $8000 and it grew to $10,000, how much is your interest earned?

    Then I = Prt
    where I = interest dollar amount
    P = principal
    r = rate
    t = time

    If you don't mind a little algebra, you can just solve for t.

    Otherwise, we can twist this into:
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