Question

$5000 was invested into an investment that pays 4.25% simple interest. The total value of the investment amounted to $6593.75. How long was principal invested for?

Answer 1

7.5 years

Explanation:

P = $5000,

R = 4.25%,

A = $6593.75,

N =?

SI = A - P = 6593.75 - 5000 =$1593. 75

`\because \: SI = ( PNR)/(100) \\ \\ \therefore \: 1593.75 = (5000 * N * 4.25)/(100) \\ \\ \therefore \: 1593.75 * 100 = 21,250 * N \\ \\ N = (159375)/(21250) \\ \\ N = 7.5 \: years \:`