Question

taylor has just won $4250 from the 50/50 at the sea dogs game and decides to invest it all. if he makes $1275 with a 5% interest rate, how long must he have had the money

Answer 1

Answer:

$t=6\ years$

Step-by-step explanation:

we know that

The simple interest formula is equal to

$I=P(rt)$

where

I is the Final Interest Value

P is the Principal amount of money to be invested

r is the rate of interest  

t is Number of Time Periods

in this problem we have

$t=?\ years\\ P=\ 4,250\\I=\ 1,275\\r=5\%=5/100=0.05$

substitute in the formula above

$1,275=4,250(0.05t)$

$0.3=(0.05t)$

$t=0.3/(0.05)$

$t=6\ years$