Posted by **Sierra** on Thursday, November 19, 2009 at 3:43pm.

How long will it take to earn $252 in interest if $1200 is invested at a 7% annual interest rate??

- Math -
**drwls**, Thursday, November 19, 2009 at 4:10pm
If the interest it withdrawn annually and not compounded, the number of years T is given by

1200*0.07*T = 252

T = 252/[(0.07)(1200)] = 3.0 years

If the interest is compounded (lefgt in the account), it will take a bit less time, but the formula to use is quite different.

I believe they expect you to assume interest is withdrawn each year.

## Answer this Question

## Related Questions

- math - How long will it take to earn $252 in interest if $1200 is invested at a ...
- math - how long will it take to earn 525$ in interest if $3500 is invested at a ...
- math - how long will it take to earn $525 in interest if $3500 is invested at 6...
- pre-algebra - how long will it take to earn $568.75 in interest if $2500 is ...
- math - You want to put $4,000 in a simple interest account. It has a 2.5% annual...
- Math - Larry has an annual return of $213.00 from $3000.00 invested at simple ...
- annual interest - you invested 12000 in two accounts paying 5% and 7% annual ...
- Math - An investment advisor invested a total of $12,000, part at 2.5% annual ...
- math - you invested $4000 in two accounts paying 2% and 9% annual interest, ...
- math - James invested $4,000 at 5% interest per year; how long will it take him ...

More Related Questions