A certain sum amount to $1400 in 2 yrs and $2000 in five years on certain fixed simple interest. In how many yrs would the amount be $1750 had it been put at the rate of interest compounded annually?
Pick.
A) 4.5
B) 3.5
C) 3
D) 2
E) 1.5
We can form equations as following:   Initial amount = P, Total amount after interest = T, Interest per year = I   T = P+I   Given T1 = P+2I = 1400T2 = P+ 5I = 2000   From this we get, P = 1000I = 200 $   Now we know that simple interest is&lt;Compound interest ( CI = SI only after 1st year if CI is compounded annually)   consider simple interest - after 1st yer it is 200$ , after 2nd years it is 400$ and after 3rd year it is 600$.   To get a 350 $ compound interest the duration have to be &gt; 1 year and &lt; 2 years.   Only option fitting : Option 1.5.
<result>E</result>
A certain sum amount to $1400 in 2 yrs and $2000 in five years on certain fixed simple interest. In how many yrs would the amount be $1750 had it been put at the rate of interest compounded annually?