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

## Answers ( )

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.