qveenjordan3239 qveenjordan3239
  • 17-10-2018
  • Mathematics
contestada

Find the number of years it would take for $1200 to earn simple interest of $324 at an annual interest rate of 6% per year

Respuesta :

kudzordzifrancis
kudzordzifrancis kudzordzifrancis
  • 26-10-2018

ANSWER

It would take 45 good years

EXPLANATION

We calculate simple interest using the formula,

[tex]I=\frac{P\times T\times R}{100}[/tex]


From the question,


[tex]I=324[/tex] dollars


[tex]R=6[/tex]%

and

[tex]P=120[/tex] dollars


We substitute into the above formula

[tex]324=\frac{120\times T\times 6}{100}[/tex]


[tex]324=\frac{720\times T}{100}[/tex]

[tex]324\times100=720\times T[/tex]


[tex]\frac{324\times100}{720}=T[/tex]



[tex]\frac{324\times10}{72}=T[/tex]


[tex]45=T[/tex]


Therefore it would take 45 years.





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