Question

If you got a 1.25% interest rate how long would you need to invest $6000 if you wanted to earn $105 in interest

Answer 1

1.4 years

Explanation:

Use the formula for simple Interest:

`I = P * r * t`

Where I is the interest gained (in your case $105),

P is the principal (in your case $6000),

r is the annual interest rate in decimal form (in your case 0.0125)

and t is the time (in years) you need to find.

Therefore, we
`105 = 6000 * 0.0125 * t = 75 * t\\t = (105)/(75) = 1.4 years`solve for "t" in the following equation: