Tara is saving money to buy her first car. She will need $20,000. She currently has $10,000 and can invest the money at 12% per year. In app

Question

Tara is saving money to buy her first car. She will need $20,000. She currently has $10,000 and can invest the money at 12% per year. In approximately how many years can she buy her car?

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Natalia 3 months 2022-02-17T15:57:25+00:00 1 Answer 0 views 0

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    2022-02-17T15:59:20+00:00

    Answer: she can buy the car in approximately 8.3 years

    Step-by-step explanation:

    We would apply the formula for determining simple interest which is expressed as

    I = PRT/100

    Where

    I represents interest on the amount invested.

    P represents the principal or amount of money invested.

    R represents interest rate

    T represents the duration of the investment in years.

    From the information given,

    P = 10000

    R = 12%

    I = 20000 – 10000 = 10000

    Therefore,

    10000 = (10000 × 12 × T)/100

    10000 = 1200T

    T = 10000/1200

    T = 8.33 years

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