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Find the time.

I = prt
Principal: $500
Rate: 5%
Interest earned: $25
Time: ?

User Thurizas
by
7.7k points

1 Answer

5 votes

Answer:

1 year

Explanation:

First, converting R percent to r a decimal

r = R/100 = 5%/100 = 0.05 per year,

then, solving our equation

t = 25 / ( 500 × 0.05 ) = 1

t = 1 years

The time required to

accumulate simple interest of $ 25.00

from a principal of $ 500.00

at an interest rate of 5% per year

is 1 year.

User SyncroIT
by
7.4k points