Question

Earn $252 in interest if he invests $1,050and it earns 6% simple interest?

Answer 1

The time taken in interest is 4 years.

Step-by-step explanation:

As per given question we have provided that :

• ➣ Interest = $252
• ➣ Principal = $1050
• ➣ Rate = 6%

Here's the required formula to find the time:

`{\longrightarrow{\pmb{\tt{I= (PRT)/(100)}}}}`

• ↝ I = Interest
• ↝ P = Principal
• ↝ R = Rate
• ↝ T = Time

Substituting all the given values in the formula to find the Principal :

➠
`{\sf{I= (PRT)/(100)}}`

➠
`{\sf{I= (P * R * T)/(100)}}`

➠
`{\sf{252= (1050 * 6 * T)/(100)}}`

➠
`{\sf{252= (6300 * T)/(100)}}`

➠
`{\sf{252= \frac{63 \cancel{00} * T}{1 \cancel{00}}}}`

➠
`{\sf{252 = 63 * T}}`

➠
`{\sf{T = (252)/(63)}}`

➠
`{\sf{T = \cancel{(252)/(63)}}}`

➠
`{\sf{T = 4 \: years}}`

`\star{\underline{\boxed{\sf{\red{Time = 4 \: years}}}}}`

Hence, the time taken is 4 years.

`\rule{300}{2.5}`

Answer 2

4 years

Explanation:

Simple interest is based on the principal amount of a loan or deposit, whereas compound interest is based on the principal amount and the interest that accumulates on it in every period.

Simple Interest = P x r x n

where P = Principal amount, r = Annual interest rate, n = Term, in years​

6% = 6 ÷ 100 = 0.06 so r = 0.06

Therefore,

Simple Interest = P x r x n

252 = 1050 x 0.06 x n

252 = 63n

n = 4

Therefore, he will earn $252 in interest on an initial investment of $1,050 at 6% simple interest over 4 years