Sonia received a statement on her Certificate of Deposit showing that her investment had returned $3526.25 over its life. If the Certificate of Deposit pays a simple interest rate of 3.1% and her initial investment was $17,500 how long had the money been invested? i think i have to mult. 17500 by 3.1%, then i think i have to
To find out how long the money had been invested, you need to work with the formula for calculating simple interest:
Simple Interest = Principal * Rate * Time
In this case, the principal (initial investment) is $17,500, the rate is 3.1%, and the simple interest earned is $3,526.25.
Let's plug in the given values into the formula:
3526.25 = 17500 * 0.031 * Time
To solve for Time, we need to isolate it on one side of the equation. Divide both sides of the equation by (17500 * 0.031):
Time = 3526.25 / (17500 * 0.031)
Time ≈ 6
Therefore, the money had been invested for approximately 6 years.