how long will it take to earn 525$ in interest if $3500 is invested at a 6% annual interest rate?
Assuming simple interest, I = PRT
Interest = Principal x Rate x Time
525 = 3500(.06)T
525 = 210T
T = ? years
2.5 years
To calculate how long it will take to earn $525 in interest with $3500 invested at a 6% annual interest rate, you can use the formula for simple interest:
Interest = (Principal * Rate * Time)
Given:
Principal (P) = $3500
Rate (R) = 6% = 0.06
Interest (I) = $525
We need to solve for Time (T).
Substitute the values into the formula and rearrange to solve for T:
525 = (3500 * 0.06 * T)
Divide both sides of the equation by (3500 * 0.06):
525 / (3500 * 0.06) = T
T = 525 / 210 = 2.5
Therefore, it will take 2.5 years to earn $525 in interest with $3500 invested at a 6% annual interest rate.
To determine how long it will take to earn $525 in interest, we need to calculate the time using the formula for simple interest: I = P * R * T, where I represents the interest earned, P is the principal amount (initial investment), R is the annual interest rate, and T is the time in years.
In this case, we know that the principal amount is $3500, the annual interest rate is 6% (or 0.06 as a decimal), and we want to find the time it takes to earn $525 in interest. So, we can rearrange the formula to solve for T:
T = I / (P * R)
Plugging in the values, we get:
T = 525 / (3500 * 0.06)
T = 525 / 210
T ≈ 2.5 years
Therefore, it will take approximately 2.5 years to earn $525 in interest if $3500 is invested at a 6% annual interest rate.