Question

In what time will $500 give $50 interest at the rate of 5% per year

Answer 1

Using simple interest formula:

`\text{I} = (P * R * T)/(100)`

As per the given statement:

$500 give $50 interest at the rate of 5% per year.

To find the time T;

Here, P = $500 , I = $50 , R = 5%

Substitute these given values in the given formula we have;

`50 = (500 * 5 * T)/(100)`

Simplify:

`50 = 5 * 5 * T`

`50 = 25 T`

Divide both sides by 25 we get;

T = 2 years

Therefore, in 2 years will $500 give $50 interest at the rate of 5% per year