Final answer:
To find the time T, rearrange the formula I = PRT to T = I / (P × R), and substitute the given values to calculate T as 15 years.
Step-by-step explanation:
To solve for the time T using the formula I = PRT where I is the interest earned, P is the principal amount, R is the annual interest rate in decimal form, and T is the time in years.
Given the values I = $270,000, P = $150,000, and R = 12% (which in decimal form is 0.12), we can rearrange the formula to solve for T:
T = I / (P × R)
Now substitute the given values:
T = $270,000 / ($150,000 × 0.12)
T = $270,000 / $18,000
T = 15 years
Therefore, the time T is 15 years.