True or False If I want to invest a certain amount of money at 12% simple interest, it will 4 take years for t

If I want to invest a certain amount of money at 12% simple interest, it will 4 take years for the money to double. True or falseTrue or False If I want to invest a certain amount of money at 12% simple interest, it will 4 take years for t
False. The amount you will have after 4 years is (1 + 0.12)^4 = 1.12^4 = 1.57 times your original investment.





The rule of 72 is a good approximation to your doubling time. Just divide the interest rate (12%) into 72 and it should take about 6 years for the money to double.True or False If I want to invest a certain amount of money at 12% simple interest, it will 4 take years for t
False.


It will take 100/12 years to double it.





With simple interest the formula to calculate interest is:





Interest= Principal x rate x time. There is no compounding, so we can't use the compound interest formula.





Here, the interest is the same as the principal.
False.


Proof:


if for example the amount of money is $1,000.


The formula for the simple interest formula


I = P*r*t


Where:


P is the principal amount, $1000.00.


r is the interest rate, 12% per year, or in decimal form, 12/100=0.12.


t is the time involved, 4....year(s) time periods.


So, t is 4....year time periods.


To find the simple interest, we multiply 1000 脳 0.12 脳 4 to get that:


The interest is: $480.00


Usually now, the interest is added onto the principal to figure some new amount after 4 year(s),


or 1000.00 + 480.00 = 1480.00. For example:


If you borrowed the $1000.00, you would now owe $1480.00


If you loaned someone $1000.00, you would now be due $1480.00


If owned something, like a $1000.00 bond, it would be worth $1480.00 now.
the rule of 72 will give the amount of time and the interest rate for your money to double. divide 72 by your interest rate and you will get the amount of time in years it will take to double. divide 72 by the amount of time in years and you will get the interest rate needed for your money to double.





in your case 72/12 = 6 so it will take more than four years for your money to double.
Simple interest=npr


n= number of years


p=principal


r=rate of interest per year


4p(0.12)=0.48p


p+0.48p=1.48p is not 2p, so it won't double in 4 years. False.