Answer:
t = 4 years
Explanation:
we know that
The simple interest formula is equal to
A = P(1+rt)
where
A is the Final Investment Value
P is the principle amount of money to be invested
r is the rate of interest
t is Number of Time Periods
in this problem we have
t=? years
P= $5,000
A= $6,000
r= 5% = 5/100 = 0.05
substitute in the formula above
6,000 = 5,000 (1 + 0.05t)
solve for t
Simplify
Divide by 5,000 both sides
1.2 = 1 + 0.05t
subtract 1 both sides
0.05t = 1.2 - 1
0.05t = 0.2
divide by 0.05 both sides
t = 4 years