Question

you earn $3,813.75 in interest by putting $11,300 in the bank at an interest rate of 3.75 % how many years was your money in the bank for

Answer 1

If you consider a simple interest, use the following formula:

I = p x r x t

where p is the initial investment ($11,300), r is the interest rate (3.75%) and t the ime in years. I is the final amount of money ($3,813.75).

Solve the previous equation for t and replace the values of p, I and r:

t = I/(p x r)

t = (3,813.75)/(11,300 x 0.0375)

t = 9

Hence, 9 years allow you to earn $3,813.75