Question

Find the time needed for
a $500 to gain an interest of $150 at 7.5% rate. ​

Answer 1

4 years

Explanation:

This is a problem in simple interest: i = prt, where:

p is the principal (intial amount), i is the interest, r is the annual interest rate and t is the time in years.

i

Solving i = prt for t, we get t = ------

pr

$150

which comes out to t = --------------------- = 4 years

($500)(0.075)