Answer
It would take 9.5 years to get to \$15,000
Work Step by Step
1. Write the simple interest future value formula, and solve for "t".
$FV = PV (1 + rt)$
$FV = PV + PVrt$
$FV - PV = PVrt$
$\frac{FV-PV}{PVr} = \frac{PVrt}{PVr}$
$\frac{FV-PV}{PVr} = t$
2. Substitute the values and calculate the value of "t":
PV = 10,000
FV = 15,000
r = 0.0525
$t = \frac{15,000 - 10,000}{(10,000)(0.0525)} = 9.5 $
