Problema Solution
How long must $1000 be invested at an annual interest rate of 3% to earn
$300 in simple interest?
Answer provided by our tutors
P = $1,000
r = 0.03 or 3%
I = $300
t = the time
I = P*r*t
300 = 1000*0.03*t
1000*0.03*t = 300
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click here to see the equation solve for t
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t = 10 years
10 years investment will yield $300 in simple interest.