Question

Your deposit 1500 in an account that earns simple interest at an annual rate of 3%. How long must you leave the money in the account to earn $900 in interest?

Answer 1

Interest equals RTP
R= rate (rate has to be converted into a decimal 3%= .03)
T= time
P= Principal (aka: money)

Answer 2

Answer: 20 years

Explanation:

The formula to calculate the simple interest is given by :-

`I=Prt`, where P is the principal amount , r is the rate of interest ( in decimal) and t is time ( in years).

Given : P= $1500 ; r= 3% =0.03 and I=$900

To find : t

From the above formula , we have

`900=1500*0.03t\\\\\Rightarrow\ t=(900)/(1500*0.03)=20`

Hence, you must leave the money in the account for 20 years to earn $900 in interest.