The answer is: "2.5 years" .
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Note: I = P * r * t ; { " Interest = Principal * rate * time "} ;
→ Solve for "t" {"time", in years} ;
Divide each side of the equation by "{P * r}" ;
to isolate "t" on one side of the equation ;
→ I / (P * r) = {P * r * t) / (P * r} ;
to get: " I / (P * r) = t " ;
↔ t = I / (P * r) ;
Given: I = $450 ;
P = $2400 ;
r = 7.5% = 7.5/100 = 0.075 ;
Plug in these values into the formula to solve for the time, "t" :
→ t = I / (P * r ) ;
= $450 / ($2400 * 0.075) ;
= $450 / ($2400 * 0.075) ;
= $450 / $180 ;
= $45 / $18 ;
= ($45 ÷ 9) / ($18 ÷ 9)
= $5 / $2 ;
= 2.5 ;
→ t = 2.5 years.
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The answer is: "2.5 years" .
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