6300 dollars is placed in an account with an annual interest rate of 6.5%. to the nearest tenth of a year, how long will it take f

6300 dollars is placed in an account with an annual interest rate of 6.5%. to the nearest tenth of a year, how long will it take for the account value to reach 28200 dollars?

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  1. It will take 53.4 years for the account value to reach 28200 dollars.

    Define the term simple interest?

    • Simple interest is calculated based on a loan’s principal or the initial deposit into a savings account.
    • Simple interest does not at all compound, therefore a creditor will indeed charge interest upon that principal sum, and a borrower will never be required to pay further interest on the interest that has already accrued.
    The equation for simple interest is:
    A = P(1 + rt)
    where,
    • The value of the final investment is A.
    • P stands for the principal sum of money that must be invested.
    • The interest rate is r.
    • t stands for Number of Periods.
    In the issue we face;
    A = 28,200
    P = 63,00
    r = 6.5
    Put the values.
    28,200 = 63,00(1 + 0.065t)
    0.065t = 3.47
    t = 53.47
    Thus, it will take 53.4 years for the account value to reach 28200 dollars.
    To know more about the simple interest, here
    #SPJ4

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