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Prashant deposits R 30 000 into a bank account that pays a simple interest rate of $7,5 \%$ p.a.. How many years must he invest for to generate R $45000 ?$
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Step 1: Write down the known variables
\begin{aligned} A &=45000 \\ P &=30000 \\ i &=0,075 \end{aligned}
Step 2: Write down the formula
$$A=P(1+i n)$$
Step 3: Substitute the values and solve for $n$
\begin{aligned} 45000 &=30000(1+0,075 \times n) \\ \frac{45000}{30000} &=1+0,075 \times n \\ \frac{45000}{30000}-1 &=0,075 \times n \\ \frac{\left(\frac{45000}{30000}\right)-1}{0,075} &=n \\ n &=6 \frac{2}{3} \end{aligned}
Step 4: Write the final answer
It will take 6 years and 8 months to make $\mathrm{R} 45000$ from $\mathrm{R} 30000$ at a simple interest rate of $7,5 \%$ p.a.
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