Question

Megan Dunstall wants to know how many months it would take for $15,000 to earn $618.75 at 51/2% of simple interest?

Answer 1

Answer: 9 months.

Explanation:

Simple interest = Principal x rate(in decimal) x Time(in years)

Given: Principal = $15,000 , rate =
`5\frac12\%=(11)/(2)\%= 5.5\%= 0.055`

Interest = $618.75

let t= time

Then,

`618.75=15000* 0.055* t\\\\\Rightarrow\ t=(618.75)/(15000*0.055)\\\\\Rightarrow\ t= 0.75\ or\ t=\frac34\ year`

1 year =12 months

`\frac34\ year=\frac34*12 = 9\ months`

Hence, it will take 9 months.