Answer:
Step-by-step explanation:
The formula for simple interest is expressed as
I = PRT/100
Where
I is the interest
P is the principal
R is the rate in percentage
The simple interest is earned only on the principal and not on compounded earnings
From the information given
P = $1500
R = 4.8%
Since she wants a total amount of $1,860 after a number of years, it means the interest on her principal will be 1860 - 1500 = $360
So we would solve for the number of years it will take to earn $360 interest. Therefore
360 = (1500 × 4.8 × t)/100
72t =360
t = 360/72 = 5
It will take 5 years
