Question

The simple intrest I on an investment of P dollars at an intrest rate r for t years is given by I=prt. Find the time it would take to earn 1400 in intrerst on an investment of 27,000 at a rate of 4.2persent

Answer 1

Therefore time = 1.23 years.

Explanation:

Formula of simple interest:

`I=Prt`

`I`= interest in dollar

P= Principal in dollar

r= rate of interest

t= time in years

Given that,

`I`= $1,400 , P=$27,000 , r=4.2%= 0.042 and t = ?

`I=Prt`

`\Rightarrow t=(I)/(Pr)`

Putting the value of P,
`I` and r

`\Rightarrow t=(1400)/(27000* 0.042)`

`\approx 1.23` years

Therefore time = 1.23 years.