Question

3. Chef Alfredo invested $4800 at a simple interest rate of 5% and can now afford a $6,000 state-of-the-art pizzaoven. How many years ago did he make this investment? Show all your work and answer in a complete sentence

Answer 1

He made the investment 5 years ago.

`5\text{ years}`

Step-by-step explanation:

Given that Chef Alfredo invested $4800 at a simple interest rate of 5%.

And the current value is $6,000.

`\begin{gathered} \text{ Principal P = \$4,800} \\ \text{rate r =5\% = 0.05} \\ \text{future value = \$6,000} \\ \text{ interest i = \$6000-\$4800= \$1200} \end{gathered}`

Recall the formula for simple interest;

`\begin{gathered} i=P* r* t \\ t=(i)/(P* r) \end{gathered}`

substituting the given values.

`\begin{gathered} t=(1200)/(4800*0.05) \\ t=5\text{ years} \end{gathered}`

Therefore, he made the investment 5 years ago.

`5\text{ years}`