Question

A principle of $20,000 is invested at $6.25 and earns $10,000 simple interest how many years has the money been invested

Answer 1

The money was invested for 8 years.

Explanation:

Given that a principal of $ 20,000 is invested at 6.25% and earns $ 10,000 simple interest, to determine how many years has the money been invested, the following calculation has to be performed:

(20,000 x 0.0625) x X = 10,000

1,250X = 10,000

X = 10,000 / 1,250

X = 8

Thus, the money was invested for 8 years.