Question

The simple interest on $12 000 invested at 8% per annum is $6720. Calculate the number of years for which the sum was invested. *

Answer 1

7 years

Explanation:

Given :

The Simple Interest earned, I = $ 6720

Rate of interest, r = 8% per annum

Principal amount, P = $12,000

We known that :

`$I = (P * T * r)/(100)$`

Here t is the number of years of investment.

Therefore,

`$t= (I * 100)/(p * r)$`

`$t= (6720 * 100)/(12000 * 8)$`

t = 7

So, the sum was invested for 7 years.