Question

How much time would it take to earn $45 simple interest on an investment of $790 if the annual rate of return was 3.4%?

Answer 1

Answer:

I will take around 1 year and 8 months to earn $ 45 of interest on this investment

Step-by-step explanation:

1. Let's review the information provided to us to answer the question correctly:

Interest earned = $ 45

Investment = $ 790

Annual simple interest rate = 3.4% = 0.034

2. How much time would it take to earn $45?

Let's recall the formula for calculating the simple interest of an investment:

A = P * (1 + rt)

Replacing with the values we already have:

835 = 790 + (1 + 0.034t).

Where t is the time we want to calculate

835 = 790 + 26.86t

26.86t = 835 - 790

26.86t = 45

t = 1.68 (Rounding to the next hundredth)

t ≅ 1 year and 8 months