Answer:
[tex]t=1.4\ years[/tex]
Step-by-step explanation:
we know that
The simple interest formula is equal to
[tex]I=P(rt)[/tex]
where
I is the Final Interest Value
P is the Principal amount of money to be invested
r is the rate of interest
t is Number of Time Periods
in this problem we have
[tex]t=?\\ P=\$12,000\\ I=\$500\\r=3\%=3/100=0.03[/tex]
substitute in the formula above
[tex]500=12,000(0.03t)[/tex]
solve for t
[tex]500=360t[/tex]
[tex]t=500/360[/tex]
[tex]t=1.4\ years[/tex]
