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Colt1911 [192]
2 years ago
9

How many days will it take for a sum of $4,000 to earn $80 interest if it is deposited in a bank paying ordinary simple interest

at the rate of 5%/year?
Mathematics
1 answer:
Maksim231197 [3]2 years ago
4 0

Answer:

It will take 146 days to earn an interest of $80.

Step-by-step explanation:

The simple interest formula is:

I=\frac{P\times r\times t}{100}

It is provided that:

I = $80

P = $4,000

r = 5% p.a.

Compute the time required as follows:

I=\frac{P\times r\times t}{100}

t=\frac{I\times 100}{P\times r}

  =\frac{80\times 100}{4000\times 5}\\\\=0.4\ \years\\\\=0.4\times 365\ days\\\\=146\ days

Thus, it will take 146 days to earn an interest of $80.

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