Question

Solve for Time Principle $2,000Interest $480Rate 8%

Answer 1

t = 3

Explanation:

Given:

Principle (P) = 2000

Interest (I) = 480

Rate (r) = 8% = 0.08

The simple interest formula is the following:

`I=P\cdot r\cdot t`

We substitute each value and solve for t, like this:

`\begin{gathered} 480=2000\cdot 0.08\cdot \:t \\ \\ t=(480)/(2000\cdot0.08)=(480)/(160) \\ \\ t=3 \end{gathered}`

Therefore, the time would be 3 periods (it depends on the interest rate if it is annual, monthly, etc.)