Question

$400 interest is earned on a principal of $2000 at a simple interest rat 5% interest per year.for how many year was the principal invested

Answer 1

4 Years.

Explanation:

Given:

Principle ⇒ 2000

Interest ⇒ 400

Rate ⇒ 5%

To Find:

Time ⇒ _

Solution:

Simple interest ⇒ p * x * t / 100

⇒ 400 = 2000 * 5 * t / 100

⇒ 400 = 200 * 5 * t / 10

⇒ 400 = 20 * 5 * t

⇒ t = 400 / 20 * 5

⇒ t = 40 / 2 * 5

⇒ t = 20 / 5

⇒ t = 4