1. Find Time n = ?
Present value C = 1000, Interest Rate i = 10%, Future value FV = 1300,
for Future value using Simple Interest method
Solution:
`C=1000`
`i=10%=0.1` per year (Interest rate)
`FV=1300` (Future value)
Now, Future value (Simple Interest) formula is
`FV=C*(1+i*n)`
`:.1300=1000*(1+0.1*n)`
`:.(1300)/(1000)=1+0.1*n`
`:.1.3=1+0.1*n`
`:.1.3-1=0.1*n`
`:.0.3=0.1*n`
`:.0.3/0.1=n`
`:.n=3`
2. Find Time n = ?
Present value C = 5000, Interest Rate i = 10%, Future value FV = 6000,
for Future value using Simple Interest method
Solution:
`C=5000`
`i=10%=0.1` per year (Interest rate)
`FV=6000` (Future value)
Now, Future value (Simple Interest) formula is
`FV=C*(1+i*n)`
`:.6000=5000*(1+0.1*n)`
`:.(6000)/(5000)=1+0.1*n`
`:.1.2=1+0.1*n`
`:.1.2-1=0.1*n`
`:.0.2=0.1*n`
`:.0.2/0.1=n`
`:.n=2`
This material is intended as a summary. Use your textbook for detail explanation.
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