Question

In how many years will $1,000 yield an interest of
$6000 at 60% simple interest?

Answer 1

10 years

Explanation:

The simple interest formula tells you the relationship between interest, principal, interest rate, and time. When the given values are put into the formula, it can be solved for the unknown time.

__

I = Prt . . . interest earned on principal P at rate r for t years

6000 = 1000·0.60·t . . . . use the given values for I, P, r

6000/600 = t = 10 . . . . divide by the coefficient of t

$1000 will yield an interest of $6000 in 10 years.