Question

Thomas invested $1498.00 at 6% simple interest per annum calculate How long it will be before his investment earns $449.40

Answer 1

t = 6 years

Explanation:

Use the simple interest formula: i = prt, where p is the principal, r is the interest rate as a decimal fraction, and is the elapsed time, in years.

Here we want to know how long it will take for the interest alone to reach $449.40. We first solve i = prt for t, obtaining t = i/(pr).

Here, the length of time is t = ($449.40) / (0.06*$1498.00). This works out to

t = 5.9947, or approximately 6 years.

t = 6 years