How much will you need to invest at 2.5% to have earned $900 in interest in 5 years

Question

asked Jul 18, 2023 219k views

2 Answers

Superkinhluan · Answer 1 · 2023-07-23T13:46:37+0000

Answer:

we need $7200 to earn $900 in 5 years.

Explanation:

Simple Interest formula:
(PRT)/(100) .......where p is principal, r is rate of interest, t is time

Using the formula:

(p*2.5*5)/(100) =900

{p*2.5*5} =900*100

12.5p =90000

p = 90000/12.5

p=7200