Problema Solution
How many days will it take for a sum of $1100 to earn $20 interest if it is deposited in a bank paying ordinary simple interest at the rate of 5%/year? (Use a 365-day year.
Answer provided by our tutors
Principal = $1100
Interest earned = $20
Interest rate = 5% pa
=> 20 = (1100*t*5)/100
=> 2000/5500 = t
=> time = 4/11 years
=> time = 4/11 * 365 days = 132.73 days. == 133 days