Question

How many years did it take to earn $406.25 in interest given a principal of $650 and a simple interest rate of 2.5%?

Answer 1

For this case we can use the following formula:

A = P(1+rt)

And the interest is given by

I = Prt

And replacing we got:

406.25 = 650 * 0.025*t

And solving for t we got:

`t=(406.25)/(650\cdot0.025)=25`

And then the final answer is:

25 years