An investment of $2050 at a rate 2% interest earned in 164 in simple interest. Find the length of the time it was invested for
My answer: 4 months
2050 * .02 = 41
care to change your answer?
To find the length of time that the investment was made for, we can use the formula for simple interest:
Simple Interest = Principal * Rate * Time
Given:
Principal (P) = $2050
Rate (R) = 2% = 0.02
Simple Interest (I) = $164
Substituting these values into the formula, we have:
$164 = $2050 * 0.02 * Time
To isolate Time, we can divide both sides of the equation by ($2050 * 0.02):
$164 / ($2050 * 0.02) = Time
Calculating the right side of the equation:
$164 / ($2050 * 0.02) ≈ 4
Therefore, the investment was made for approximately 4 months.