How long will it take $800 to earn $18 at 6% simple interest?
I = PRT
18 = 800 * 0.06 * t
18 = 48t
18 = 0.375
0.375 * 12 = 4.5 months
To find out how long it will take for $800 to earn $18 at 6% simple interest, we need to use the formula for calculating simple interest:
Simple Interest = (Principal * Interest Rate * Time)
In this case, the principal is $800, the interest rate is 6% (expressed as 0.06), and the interest earned is $18. We need to solve for time.
Let's rearrange the formula to solve for time:
Time = Simple Interest / (Principal * Interest Rate)
Plugging in the given values:
Time = $18 / ($800 * 0.06)
Time = $18 / $48
Time = 0.375 years
To convert this to a more commonly used unit, we can multiply the decimal value by 12 to get the number of months:
Time = 0.375 * 12
Time = 4.5 months
Therefore, it will take 4.5 months for $800 to earn $18 at 6% simple interest.