Question

How long must $2100 be invested at an annual interest rate of 3% to earn $200 in simple interest? (I = Prt)

Answer 1

Hello,

I=200$

P=2100$ - amount borrowed

r= 3% - rate

Now, solve for time period (t)

Where t=I/Pr

t=200/2100(3%)

t= 3.17 years

Thus, it would take 3.17 years to pay off.

Faith xoxo