Question

How long would it take an investment of $90000.00 to accumulate the $27,337.00 in simple interest at an annum rate of 6.75%.

Answer 1

4.5 years

Explanation:

I = $ 27,337.50

Equation:

I = Prt

Calculation:

First, converting R percent to r a decimal

r = R/100 = 6.75%/100 = 0.0675 per year,

then, solving our equation

I = 90000 × 0.0675 × 4.5 = 27337.5

I = $ 27,337.50

The simple interest accumulated

on a principal of $ 90,000.00

at a rate of 6.75% per year

for 4.5 years is $ 27,337.50.

Answer 2

`~~~~~~ \textit{Simple Interest Earned} \\\\ I = Prt\qquad \begin{cases} I=\textit{interest earned}\dotfill & \$ 27337\\ P=\textit{original amount deposited}\dotfill & \$90000\\ r=rate\to 6.75\%\to (6.75)/(100)\dotfill &0.0675\\ t=years \end{cases} \\\\\\ 27337 = (90000)(0.0675)(t) \implies \cfrac{27337}{(90000)(0.0675)}=t\implies 4.5\approx t`