How long will it take for a sum of 500$ attracting simple interest

* The answer is in the explanation below*

Simple interest is calculated only on the initial amount (principal) that you invested.

Example: Suppose you give $100 to a bank which pays you 5% simple interest at the end of every year. After one year you will have $105, and after two years you will have $110. This means that you will not earn an interest on your interest. Your interest payments will be $5 per year no matter how many years the initial sum of money stays in a bank account.

How much will an investment of $500 be worth in the future?

Initial investment: $500

Yearly deposits: $0

Interest rate: 6.00%

Years Invested: 20

At the end of 20 years, your savings will have grown to $1,604.

You will have earned in $1,104 in interest.

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step-by-step explanation: