Answer:
8 years
Step-by-step explanation:
You need to use the future value for simple interest equation here:
future value = principal x (1 + interest rate x time)
Given:
FV = 8000
p = 5000
r = 0.08
t = ?
[tex]FV = p (1+rt)\\8000=5000(1+0.08t)\\1.6=1+0.08t\\0.08t=0.6\\t=7.5[/tex]
It will take 8 years to reach $8000 (you need to round the 7.5 up because the interest is only calculated once annually - your answer must be a whole number).
