Question

How many years would it take to make $500 interest on a 12000 investment at 3% per year

Answer 1

`t=1.4\ years`

Explanation:

we know that

The simple interest formula is equal to

`I=P(rt)`

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

`t=?\\ P=\$12,000\\ I=\$500\\r=3\%=3/100=0.03`

substitute in the formula above

`500=12,000(0.03t)`

solve for t

`500=360t`

`t=500/360`

`t=1.4\ years`