Question

James invested $4,000 at 5% interest per year; how long will it take him to earn $200 in simple interest?​

Answer 1

❃Given :

• Principal( P) = $ 4,000
• Rate( R) = 5 %
• Interest Amount(IA / I)= $ 200

❃To Find :

• Time, T = ?

❃Solution :

We, know that :

$\red{\boxed{\sf IA= \dfrac{Principal \times Rate \times Time}{100}}}$

$\underline{\boxed{\sf I = \dfrac{P \times R \times T}{100}}}$

❃By putting values, we have

$\sf : \implies 200 = \dfrac{4000 \times 5 \times T}{100}$

$\sf : \implies 200 \times 100 = 20000 \times T$

$\sf : \implies 20000 = 20000 \times T$

$\sf : \implies \cancel{\dfrac{20000}{20000}} = T$

$\sf : \implies 1 = T$

$\underline\blue{\boxed{\sf T = 1 \: year}}$

It takes 1 year for him to earn $ 200 in simple interest.

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Answer 2

It takes 1 year for him to earn $ 200 in simple interest.