contestada

The simple interest I on an investment of P dollars at an interest rate r for t years is given by I=Prt. Find the time it would take to earn $1400 in interest on an investment of $27,000 at a rate of 4.2%.

Respuesta :

calculista

we know that

[tex]I=Prt[/tex]

where

I is the amount in interest

P is the investment

r is the interest rate

t is the time in years

Solve for t

[tex]t=I/(Pr)[/tex]

we have

[tex]I=\$1,400\\ P=\$27,000\\ r=4.2\%=0.042[/tex]

substitute

[tex]t=1,400/(27,000*0.042)=1.23\ years[/tex]

therefore

the answer is

[tex]1.23\ years[/tex]

Otras preguntas