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

If the interest it withdrawn annually and not compounded, the number of years T is given by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I believe they expect you to assume interest is withdrawn each year.

You deposited $1200 dollars in a savings account that earns a simple interest rate of 3% per year. How many years do you need to keep the money in the account to earn $252 in interest?

To calculate the time it takes to earn a specific amount of interest, we need to use the formula for simple interest:

Interest = Principal × Rate × Time

From the given information, we know:
- Principal (P) = $1200
- Rate (R) = 7% or 0.07
- Interest (I) = $252

Let's plug in the values and solve for Time (T):

$252 = $1200 × 0.07 × T

Divide both sides of the equation by ($1200 × 0.07):

T = $252 / ($1200 × 0.07)

T ≈ 3 years

Therefore, it will take approximately 3 years to earn $252 in interest when $1200 is invested at a 7% annual interest rate.

To calculate the time it will take to earn a specific amount of interest, we can use the formula for calculating simple interest:

I = P * r * t

Where:
- I is the amount of interest earned
- P is the principal amount (initial investment)
- r is the interest rate per period
- t is the time period in years

In this case, we have an initial investment of $1200 and an annual interest rate of 7%. We want to find the time period required to earn $252 in interest.

Let's plug in the values into the formula:

252 = 1200 * 0.07 * t

Now we can solve for t:

t = 252 / (1200 * 0.07)
t = 3

Therefore, it will take 3 years to earn $252 in interest with a $1200 investment at a 7% annual interest rate.