Question

the simple interest x on an investment of p dollars at an interest rate r for t years is given by x = xrt. Find the time it would take to earn $900 in interest on an investment of $21,000 at a rate of 4.6%

Answer 1

t = 0.93 years

(about 0 years 11 months)

Explanation:

First, converting R percent to r a decimal

r = R/100 = 4.6%/100 = 0.046 per year,

then, solving our equation

t = (1/0.046)((21900/21000) - 1) = 0.93

t = 0.93 years

The time required to get a total amount, principal plus interest, of $21,900.00 from simple interest on a principal of $21,000.00 at an interest rate of 4.6% per year is 0.93 years (about 0 years 11 months).