Question

How many days will it take $1000 to accumulate to at least $1200 at 5,5% simple interest?

Answer 1

Answer-

Principal = P = $ 1000
Amount = A = $ 1200

A = P + Interest

Interest = PNR
N = Number of years
R = rate of interest = 5.5 % = 0.055

A = P + PNR
A = P x ( 1 + NR)
$ 1200 = $ 1000 x ( 1 + N x 5.5%)

$ 1200 / $1000 = 1 + N x 5.5 %

1.2 = 1 + N x 5.5 %

1.2 = N x 5.5 %

0.2 = N x 0.055

N = 0.2 / 0.055

N = 3.636 Years

N = 3.636 x 365 days

N = 1327.14 days

Therefore the number of days it will take $1000 to accumulate to at least $1200 at 5.5% simple interest is 1327.14 days.