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If you deposit $1,500 at a rate of 5%, in how many years would you earn $375 in interest?

User Jtam
by
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1 Answer

6 votes

Answer: it will take 5 years.

Explanation:

Assuming it is simple interest, we would apply the formula for determining simple interest is expressed as

I = PRT/100

Where

I represents interest paid on the amount of money deposited.

P represents the principal or amount of money deposited.

R represents interest rate on the deposit.

T represents the duration of the deposit in years.

From the information given,

P = $1500

I = $375

R = 5%

Therefore,

375 = (1500 × 5 × T)/100

375 = 75T

T = 375/75

T = 5 years

User Peter Cheng
by
5.3k points
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