Answer: The answer is 1.5 years or about 1 year and 6 months.
Explanation: The formula used to solve the problem is
t = I / Pr
which is derived from the formula of Simple Interest (SI)
SI = Prt
where, P is the principal amount, r is the rate of interest and t is the time period.
Solving the sum step by step,
First, converting R percent to r a decimal
r = R/100 = 9%/100 = 0.09 per year,
to find out amount of SI we use,
SI = Final value - Principal amount = 7604.5-6700 = 904.5
then, we substitute the values that are known to us in the equation provided,
t = 904.5 / ( 6700 × 0.09 ) = 1.5
t = 1.5 years
Therefore, the time required to accumulate simple interest of 904.50
from a principal of 6,700 at an interest rate of 9% per year
is 1.5 years or 1 year and 6 months.