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Rosa wants to invest \( \$ 4400 \) in a savings account that pays \( 7.1 \% \) simple interest. How long will it take for this investment to double in value? Round your answer to the nearest tenth.

Ask by Daniel Moran. in the United States
Feb 27,2025

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It will take approximately 14.1 years for Rosa's investment to double in value.

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To find out how long it will take for Rosa's investment to double in value with simple interest, we can use the simple interest formula: \[ A = P(1 + rt) \] where: - \( A \) is the total amount of money accumulated after time \( t \), - \( P \) is the principal amount (initial investment), - \( r \) is the rate of interest (in decimal), and - \( t \) is the time in years. Since Rosa wants to double her investment of \( \$ 4400 \), the total amount \( A \) will be \( \$ 8800 \). The interest rate \( r \) is \( 7.1\% \) or \( 0.071 \) in decimal. Setting up the equation: \[ 8800 = 4400(1 + 0.071t) \] Dividing both sides by \( 4400 \): \[ 2 = 1 + 0.071t \] Subtracting \( 1 \) from both sides gives: \[ 1 = 0.071t \] Now, solving for \( t \): \[ t = \frac{1}{0.071} \approx 14.0845 \] Rounding to the nearest tenth, it will take approximately \( 14.1 \) years for Rosa's investment to double in value.

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