Question

Ron earned 13200 in interest on an account with a principal amount of 24000 and an interest rate of 11%. How long were the funds in the account?

Answer 1

• I=PRT/100
• T=100I/PR
• T=100(13200)/24000(11)
• T=10(132)/24(11)
• T=5years

Answer 2

• 5 years

Explanation:

It is assumed the interest is simple.

Use the interest formula:

• I = Prt

We have:

• I = 13200
• P = 24000
• r = 11% = 0.11

Substitute values and solve for t:

• 13200 = 24000*0.11t
• 13200 = 2640t
• t = 13200/2640
• t = 5 years