Answer:
20 years
Step-by-step explanation:
Simple interest is only interest on the original principal amount. Every year, you earn the same interest amount.
At 5% simple interest, you earn 5% of the principal each year.
In any year, you earn
5% of $500 = 5% * 500 = 0.05 * 500 = $25
Each year, you earn $25 in interest.
How many years will it take to earn a full $500 by earning $25 per year?
$500/$25 = 20
It takes 20 years to double the $500.
