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Your deposit 1500 in an account that earns simple interest at an annual rate of 3%. How long must you leave the money in the account to earn $900 in interest?

Respuesta :

Interest equals RTP
R= rate (rate has to be converted into a decimal 3%= .03)
T= time
P= Principal (aka: money)
JeanaShupp

Answer: 20 years

Step-by-step explanation:

The formula to calculate the simple interest is given by :-

[tex]I=Prt[/tex], where P is the principal amount , r is the rate of interest ( in decimal) and t is time ( in years).                                              

Given : P= $1500   ; r= 3% =0.03   and  I=$900

To find : t

From the above formula , we have

[tex]900=1500\times0.03t\\\\\Rightarrow\ t=\dfrac{900}{1500\times0.03}=20[/tex]

Hence, you must leave the money in the account for 20 years to earn $900 in interest.

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