Question

Frank invests $1,000 in simple interest investment account that pays 8% a year. After a number of years, he withdraws his balance of $2,200. Using the formula I = P r t, how many years was his money invested? Work backwards-but find the Interest first!

Answer 1

15 years

Explanation:

Given data

P=$1,000

R=8%

A= $2200

I= A-P

I=2200-1000

I=$1200

Applying the formula

I=PRT/100

1200=1000*8*T/100

cross multiply

1200*100= 8000T

120000= 8000T

divide both sides by 8000

T=120000/8000

T=15 years

Hence the time is 15 years