Answer:
$431
Step-by-step explanation:
Given parameters:
Principal = $200
Time given for the amount to double = 13yrs
Unknown:
Amount in the account after 15yrs = ?
Solution:
To solve this problem, we need to find the interest rate on this investment.
I = [tex]\frac{PRT}{100}[/tex]
I = interest
P = principal
R = Rate
T = time
Now,
if the amount should double,
Interest earned = $200
So;
200 = [tex]\frac{200 x R x 13}{100}[/tex]
200 = 26 x R
R = 7.7%
Now, in 15yrs, this amount will be;
let us find the interest;
I = [tex]\frac{200 x 7.7 x 15}{100}[/tex]
I = $231
The amount in the account will be:
Amount = Principal + Interest
Amount = $200 + $231 = $431
