Answer:
It will take 3 years and 9 months or simply 3.75 years
Step-by-step explanation:
For his money to grow to $950, this means he had earned an interest of the value $950 - $800 = $150
Now, to calculate the number of years it took to earn this interest, we make use of the simple interest formula
mathematically,
I = PRT/100
since we are looking for T, we can rewrite the equation to be?;
100I = PRT
T = 100I/PR
where I is the interest which is $150
R is the rate charged on the deposit and that is 5% per annum
P is the amount deposited initially which is 800
while I is the interest which is $150
Now plugging these values;
T = (100 * 150)/(5 * 800)
T = 15000/4,000 = 3.75 years or simply 3 + (0.75 * 12) = 3 years 9 months
