How many years would it take to make $500 interest on a 12000 investment at 3% per year

Question

asked Sep 5, 2020 147k views

1 Answer

Keilo · Answer 1 · 2020-09-09T10:35:32+0000

Answer:

$t=1.4\ years$

Explanation:

we know that

The simple interest formula is equal to

I=P(rt)

where

I is the Final Interest Value

P is the Principal amount of money to be invested

r is the rate of interest

t is Number of Time Periods

in this problem we have

$t=?\\ P=\$12,000\\ I=\$500\\r=3\%=3/100=0.03$

substitute in the formula above

500=12,000(0.03t)

solve for t

500=360t

t=500/360

$t=1.4\ years$