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22 February, 03:35

If you have $2,500 to invest and need to withdraw $4,430 at some time in the future, what is the minimum number of whole years to leave the money invested at 5 percent?

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  1. 22 February, 03:47
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    Principal = P, Annual Rate = R% and Time = T years

    Simple Interest (SI) = P*R*T/100;

    So, T = 100*SI/P*R

    = 100 x (4430 - 2500) / 2500 * 5

    = 100 x 1930 / 12500

    = 16 years
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