If money is invested at 8% per year,after approximately how many years will the interest earned be equal to the original investment?
A)5 years
B)6 years
C)9 years
D)12 years

Question

Quizplus · Accepted Answer

Let the original investment be P. Then, the interest earned after t years will be 8% of P per year, or 0.08Pt. We want to find t such that 0.08Pt = P. Dividing both sides by P, we get 0.08t = 1, or t = 1/0.08 = 12.5 years. Since we can't invest for a fraction of a year, the closest answer is 9 years.

If Money Is Invested at 8% Per Year,after Approximately How