Question

4. How much time will it take for a principal of $20,000 to give 1000 as interest
at 5% per annum?
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Answer 1

Step-by-step explanation:

It will take 10 years. To solve for this, we will use the formula I = Prt where I stands for the interest, P stands for the principal amount, r is the rate of interest, and t is the duration.

Solutions:

Given: I = Principal x rate x time

5% - rate of interest

If the principal will earn an interest equal to half of it at 5% simple interest then,

1/2 P = principal x rate x time

1/2 P = P x .05 x t

Express 1/2 as a decimal then proceed with the division.

_.5 P = .05 Pt

.05 P .05 P

10 = t

Therefore, it will took 10 years to have a principal earn an interest equal to half of it at 5% simple interest.

Keywords: simple interest, principal, rate, time

Answer 2

Answer:

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