Question

Suppose $7000 is invested at 6% simple interest. If $840 in interest is earned, how long was the money invested?

Answer 1

To find the time period the money was invested for, we can use the formula for simple interest: I = P * r * t. In this case, we are given that $840 is earned as interest, the principal amount is $7000, and the interest rate is 6%. Using the formula, we can determine that the money was invested for approximately 2 years.

Step-by-step explanation:

To find the time period the money was invested for, we can use the formula for simple interest:

I = P * r * t

Where:

• I is the interest earned
• P is the principal amount
• r is the interest rate per year
• t is the time period in years

In this case, we are given that $840 is earned as interest, the principal amount is $7000, and the interest rate is 6%. Plugging in these values into the formula, we get:

$840 = $7000 * 0.06 * t

Simplifying the equation, we get:

t = 840 / (7000 * 0.06)

Using a calculator, we can determine that t ≈ 2 years.

Answer 2

To find the amount of time the money was invested, we can use the formula for simple interest: Interest = Principal * Rate * Time. In this problem, the principal is $7000, the interest is $840, and the rate is 6%. By plugging these values into the formula, we can calculate that the money was invested for 2 years.

Step-by-step explanation:

To find the amount of time the money was invested, we can use the formula for simple interest:

Interest = Principal * Rate * Time

In this problem, we know that the principal is $7000, the interest is $840, and the rate is 6% (0.06 as a decimal). Let's plug these values into the formula:

$840 = $7000 * 0.06 * Time

To solve for Time, we divide both sides of the equation by $7000 * 0.06:

Time = $840 / ($7000 * 0.06)

Time = $840 / $420

Time = 2 years

Therefore, the money was invested for 2 years.