Jim invested $4,000 in a bond at a yearly rate of 4.5%. He earned $540 in interest. How long was the money invested? a. 8 years b. 9 years c. 10 years d. 11 years

Question

asked Feb 4, 2024 109k views

1 Answer

Banach Tarski · Answer 1 · 2024-02-10T20:59:10+0000

Jim's money was invested for 3 years.

To find the time period for Jim's investment, we can use the formula for simple interest:

Interest = Principal x Rate x Time

Given that Jim invested $4,000, earned $540 in interest, and the interest rate was 4.5%, we can solve for Time:

$540 = $4,000 x 0.045 x Time

Simplifying the equation, we get:

Time = $540 / ($4,000 x 0.045)

Calculating the value, we find that Time is approximately 3 years.

Therefore, the money was invested for 3 years.