In how many years will $1,200 yield an interest of $180 at 3% simple interest?​

Question

In how many years will $1,200 yield an interest of $180 at 3% simple interest?​

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Lydia 2 months 2021-10-12T02:34:08+00:00 1 Answer 0 views 0

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    2021-10-12T02:35:27+00:00

    Answer:

    5 years.

    Step-by-step explanation:

    Simple interest is the easiest way to calculate the interest from any loan or any investment.

    We know,

    Simple Interest, I = P × n × r

    Where,

    P = Principal

    n = number of years/periods

    r = simple interest rate

    Given,

    P = $1,200

    Simple Interest, I = $180

    r = 3% = 0.03

    Putting the values into the formula, we can get,

    I = P × n × r

    or, $180 = $1,200 × n × 0.03

    or, $1,200 × n × 0.03 = $180 [Interchanging the sides]

    or, $36 × n = $180

    or, n = $180 ÷ $36 [Dividing both the sides by $36]

    Therefore, number of years, n = 5

    In 5 years, the $1,200 yield an interest of $180 at 3% simple interest.

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