Question

Greg invested $6000 in a bond with a yearly interest of 4%. His total interest on his investment was $1200. What was the length of the investment

Answer 1

5 years

Explanation:

First, converting R percent to r a decimal

r = R/100 = 4%/100 = 0.04 per year,

then, solving our equation

t = 1200 / ( 6000 × 0.04 ) = 5

t = 5 years

The time required to

accumulate simple interest of $ 1,200.00

from a principal of $ 6,000.00

at an interest rate of 4% per year

is 5 years.