Question

The simple interest I on an investment of p dollars at an interest rate r for t years is given by I=prt. Find the time it would take to earn $900 in interest on an investment of $21,000 at a rate of 4.6%. Also: Whats your name man? A. Alexander Hamiloan B. Alex Hamilham C. Alexander Hamilton D. Alexander Lukoshanko

Answer 1

Explanation:

You have the formula written correctly, so now we just need to fill it in with what we have. Our principle, or initial investment, is 21,000; our interest rate of 4.6% as a decimal (always as a decimal!) is .046; and our interest earned is 900. We need to find t. Setting up with what we have:

21000(.046)(t) = 900 and

966t = 900 and

t = .931 years

.9 of a year is the same as 10.8 months or so.