Question

TJ invested $8000 in a bond at a yearly rate of 4% simple interest. He earned $1120

in interest. How long was the money invested?

Answer 1

3.5 years (3 years 6 months)

Explanation:

You are going to use the simple interest formula for this:

`t=(I)/(Pr)`

P = initial balance

r = annual interest rate

I = interest

First, change 4% into a decimal:

4% ->
`(4)/(100)` -> 0.04

Now, plug in the values into the equation:

`t=(1,120)/((8,000)(0.04))`

`t=3.5`

The money was invested for 3.5 years (3 years 6 months).