Question

How long must $512 be invested at a rate of 7.5% to earn $303.52 in interest?

Answer 1

8 years

Step-by-step explanation:

The number of years that must be invested at a rate of 7.5% to earn $303.52 in interest is 8 years.

To calculate this, you can use the simple annual interest formula:

I = Prt (I = interest; P = present value; r = rate; t = time).

Substituting the given values, you get I = $303.52, P = $512, and r = 0.075 (7.5%).

Solving for t, you get: t = 8 years.