Problema Solution
Wesley invested $6500 in a mutual fund at a yearly rate of 3 3/4%. If he has earned $975 in interest, how long has the money been invested?
Answer provided by our tutors
Simple interest earned (I) can be found by the formula:
where P is the principal, r is the annual interest rate,and t is the number of years that the principal will be invested.
In this problem:
P=6500
r=3 3/4%=3.75%
I=975
Substituting into the formula, we have
975 = 6500*3.75%t
Solving the equation for t, we obtain:
975 = 65*3.75*t
t = 4