Question

How many years would it take to make $500 interest on a 12000 investment at 3% per year

Answer 1

Answer:

$t=1.4\ years$

Step-by-step explanation:

we know that

The simple interest formula is equal to

$I=P(rt)$

where

I is the Final Interest Value

P is the Principal amount of money to be invested

r is the rate of interest  

t is Number of Time Periods

in this problem we have

$t=?\\ P=\ 12,000\\ I=\ 500\\r=3\%=3/100=0.03$

substitute in the formula above

$500=12,000(0.03t)$

solve for t

$500=360t$

$t=500/360$

$t=1.4\ years$