Calculate the time necessary to achieve the investment goal. Give your answer to the nearest day. Use a 365-day year.
$1,000 at 6% simple interest; deposit $800

A) 4 year 62 days
B) 4 year 304 days
C) 4 year 76 days
D) 4 year 69 days
E) 4 year 61 days

Question

Calculate the time necessary to achieve the investment goal. Give your answer to the nearest day. Use a 365-day year. ​
$1,000 at 6% simple interest; deposit $800
​
A) 4 year 62 days
B) 4 year 304 days
C) 4 year 76 days
D) 4 year 69 days
E) 4 year 61 days

Quizplus · Accepted Answer

To achieve the investment goal, we first calculate the total amount of interest needed. The initial deposit is $800, and the goal is $1,000, so the interest needed is $1,000 - $800 = $200. Using the formula for simple interest, I = PRT (where I is interest, P is principal, R is the rate per period, and T is time in years), we solve for T: $200 = $800 * 0.06 * T. Solving for T gives T = $200 / ($800 * 0.06) = $200 / $48 = 4.1667 years. Converting the decimal part to days: 0.1667 * 365 ≈ 61 days. Therefore, the time necessary is approximately 4 years and 61 days.

Calculate the Time Necessary to Achieve the Investment Goal