Question

$360 will be an interest of $3000 at 4%. How long does it take time?

a) 3 years
b) 4 years
c) 2 years
d) 5 years

Answer 1

It will take 3 years for $3000 to generate $360 in interest at an annual rate of 4%, using the simple interest formula I = PRT and solving for T.

Step-by-step explanation:

To determine how long it will take for $3000 to generate $360 in interest at an annual rate of 4%, you can use the simple interest formula: I = PRT, where I is the interest earned, P is the principal amount, R is the rate of interest, and T is the time in years.

In this case, I = $360, P = $3000, and R = 4% or 0.04 in decimal form. We can rearrange the simple interest formula to solve for T: T = I / (P * R).

Plugging in the values, we get T = $360 / ($3000 * 0.04) which simplifies to T = $360 / $120. Therefore, T = 3 years. The correct answer is a) 3 years.