Question

3) Jael invests $12 000 at a bank which pays 3% simple interest. After a certain

number of years, the total amount she receives is $15 240.
(a) Calculate the amount of interest Jael received,

(b) Determine the number of years in which Jael invested the money.

Answer 1

a) $3,240

b) 9 years

Explanation:

a) if principal was 12,000 and total amount after interest is 15,240 then interest earned is the difference, which is 3240

b) Interest = Principal x rate x time

let 't' = time, in years

3240 = 12000 x .03 x t

3240 = 360t

3240/360 = t

9 = t