Question

You deposit $1200 in an account. The annual interest rate is 3%. How long will it take you to earn $108 in simple interest?

Answer 1

t = (1/0.03)((1308/1200) - 1) = 3
t = 3 years

Answer 2

It will take 3 years

Explanation:

You deposit $12,00 at the interest rate 3%.

Formula of simple interest = I = (p×r×t)

Where p = principal amount (1200)

r = rate of interest 3% (3/100)

t = time in years

Now we plug in the values in the formula

108 =
`(1200* 3* t)/(100)`

t =
`(108)/(36)`

t = 3 years