Answer:
The time it takes to earn an amount A with a given principal P invested for a time period t is t = (A/P - 1)/r
Step-by-step explanation:
In order to calculate the time it would take to earn a certain amount of interest on a principal amount in an investment with simple interest, we use the simple interest formula as follows;
A = P·(1 + r·t)
A = The final amount after the number of periods of investment
P = The principal or initial amount
r = The interest rate per period
t = The number of the time periods
Therefore, the time it takes to earn a certain amount of interest on a principal amount in an investment with simple interest is fount by making t the subject of the above equation, which is given as follows;
A/P = 1 + rt
rt = A/P - 1
t = (A/P - 1)/r
Therefore, the time it takes to earn an amount A with a given principal P invested for a time period t is given by t = (A/P - 1)/r.
