How long would you have to invest $5300 at 7.2%/a simple interest to earn $1200 interest
At simple interest (not compound) the equation is
Interest = Prt
1200 = 5300 * .072 * t
t = 3.2 years
A=P(1+r)^t, A=1200 P=5300 R=7.2/100, now solve for t
T=I/Pr1200/5300* 7.2%
T=1200/ 5300* .072
T=1200/381.60
T=3.1444
To calculate how long it would take to earn $1200 in interest on a $5300 investment at a 7.2% annual simple interest rate, we can use the following formula:
Interest = Principal × Rate × Time
In this case, we know the principal ($5300) and the interest amount ($1200), and we need to find the time it takes to earn that interest. Rearranging the formula to solve for time (T), we get:
Time (in years) = Interest / (Principal × Rate)
Let's plug in the given values:
Time = $1200 / ($5300 × 0.072)
Now we can simplify the equation and calculate the time:
Time ≈ 1200 / (5300 * 0.072)
≈ 1200 / 382.8
≈ 3.133 years
So, it would take approximately 3.133 years (or roughly 3 years and 1.6 months) to earn $1200 in interest with a $5300 investment at a 7.2% simple interest rate.