Final answer:
To calculate the time 't' given an interest of $132.5, a rate of 5%, and a principal of $530, use the formula I = Prt, rearrange to solve for 't', and find that t equals 5 years.
Step-by-step explanation:
To find the time (t) when the interest (I) is $132.5, the rate (r) is 5% (or 0.05 when converted to a decimal), and the principal (P) is $530, you can use the formula I = Prt.
First, substitute the known values into the formula:
I = P × r × t
$132.5 = $530 × 0.05 × t
Now, isolate the variable t by dividing both sides of the equation by the product of P and r:
t = $132.5 / ($530 × 0.05)
t = $132.5 / $26.5
t = 5
Therefore, the time (t) is 5 years.