Question

James invested $4,000 at 5% interest per year; how long will it take him to earn $200 in simple interest?

Answer 1

Given :

• Principal, P = $ 4,000
• Rate, R = 5 %
• Interest Amount, I = $ 200

To Find :

• Time, T = ?

Solution :

We, know that :

$\underline{\boxed{\sf Interest \: amount = \dfrac{Principal \times Rate \times Time}{100}}}$

$\underline{\boxed{\sf I = \dfrac{P \times R \times T}{100}}}$

By putting values, we have

$\sf : \implies 200 = \dfrac{4000 \times 5 \times T}{100}$

$\sf : \implies 200 \times 100 = 20000 \times T$

$\sf : \implies 20000 = 20000 \times T$

$\sf : \implies \cancel{\dfrac{20000}{20000}} = T$

$\sf : \implies 1 = T$

$\underline{\boxed{\sf T = 1 \: year}}$

It takes 1 year for him to earn $ 200 in simple interest.

Answer 2

Answer:

It takes 1 year.

Step-by-step explanation:

You have to apply simple interest formula, I = (P×R×T)/100 where I represent interest amount, P is principle, R is interest rate and T is number of years :

$I = \frac{PRT}{100}$

$200 = \frac{4000 \times 5 \times T}{100}$

$20000 = 20000T$

$T = 1$