177k views
2 votes
Interest earned: $84
Principal: $600
Interest rate: 7%
Time: ?

2 Answers

1 vote

Answer:

2 years

Explanation:

The simple interest formula is equal to - A = P (1 + rt) Where:

A is the Final Investment Value

P is the Principal 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 = $600

A + $600 + $84 = $684

r = 0.07

A substitute in the formula above would be:

$684 = $600(1 + (0.07)t)

solve for t :

t = [(684/600) - 1]/0.07 = 2 years

User Goldfish
by
5.5k points
5 votes
84(600 x 0.07)
= 2yrs
Rate: 7/100 = 0.07
User Ellic
by
5.2k points