Question

You deposit 1200 in an account. the annual interest is 3 percent. how long will it take you to earn 108 in simple interest

Answer 1

Each year, you earn 3 percent of 1200, or 36. So after 3 years, you’ll have earned 3 * 36 or 108. So 3 years.

Answer 2

1200 + 108 = 1200( 1 + 0.03x)

1308 = 1200 + 36x

36x = 108

x = 3 years