Question

How many years would it take to earn $500 interest on an investment of $1,250 at 5% simple interest?

Answer 1

8 years to earn $500

Answer 2

It would take 8 years

Explanation:

$1,250 ÷ 100 = 12.5

So 12.5 is 1%

12.5 x 5 = 62.5

So 62.5 = 5%

500 ÷ 62.5 = 8 years

So it would take 8 years to year $500 interset on an investment of $1250 at a 5% simple interest