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Calculate the time it would take $7000 dollar investment to earn $1400 of simple interest at a rate of 4% per annum.

User Aurast
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1 Answer

1 vote

Answer: 5 years

Explanation:

Hi, to answer this question we have to apply the simple interest formula:

I = p x r x t

Where:

I = interest

P = Principal Amount

r = Interest Rate (decimal form)

t = years

Replacing with the values given

1400 = 7000x (4/100) x t

Solving for t:

1400 =7000 x 0.04 x t

1400 =280 t

1400/280 =t

t = 5 years

Feel free to ask for more if needed or if you did not understand something.

User Surendra
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