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

Answer:

7.5 years

Step-by-step explanation:

P = $5000,

R = 4.25%,

A = $6593.75,

N =?

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

$\because \: SI = \frac{ PNR}{100} \\ \\ \therefore \: 1593.75 = \frac{5000 \times N \times 4.25}{100} \\ \\ \therefore \: 1593.75 \times 100 = 21,250 \times N \\ \\ N = \frac{159375}{21250} \\ \\ N = 7.5 \: years \:$