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Nancy invested $6000 in a bond at a yearly rate of 3%. She earned $450 in interest. How long was the money invested?

User Flakshack
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1 Answer

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Answer:

Nancy invested her money for 2.5 years.

Explanation:

We can use the formula for simple interest to solve for the time (in years) that Nancy invested her money:

Interest = Principal x Rate x Time

Here, the principal is $6000, the rate is 3%, and the interest earned is $450. Substituting these values into the formula, we get:

$450 = $6000 x 0.03 x Time

Simplifying, we get:

Time = $450 / ($6000 x 0.03)

Time = 2.5 years

Therefore, Nancy invested her money for 2.5 years.

For more help:

Identify the given variables:

Principal (P) = $6000

Annual interest rate (r) = 3%

Interest earned (I) = $450

Use the formula for simple interest to solve for time (t):

I = P * r * t

where t is the time in years

Substitute the given values into the formula:

$450 = $6000 * 0.03 * t

Solve for t:

$450 = $180t

t = $450 / $180

t = 2.5 years

Extra information:

The simple interest formula is a mathematical formula used to calculate the interest earned on a principal amount of money, given a fixed interest rate and time period. The formula is:

I = P * r * t

where:

• I is the interest earned

• P is the principal amount

• r is the annual interest rate (as a decimal)

• t is the time period (in years)

Using this formula, you can calculate the amount of interest earned on a given principal amount, at a given interest rate, for a certain amount of time. It is called "simple" interest because it assumes that the interest is calculated only on the principal amount, without compounding (i.e., without adding the interest earned back into the principal amount).

Hoped this help! I'm sorry if it's wrong. If you need more help, ask me! :]

User Vijayk
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