How long will a $9000 investment take to earn $180 interest at an annual interest rate of 8%?

1 Answer
May 11, 2018

t = 0.25 years

Explanation:

Simple Interest

I = prt

I: interest ($180)
p: principal ($9000)
r: rate (8%, 8/100 , becomes .08)
t: time (unknown, in years)

Plug your data into your equation.

180 = (9000)(.08)(t)

First, multiply 9000 by .08 to simplify in order to isolate for t.

9000 * .08 = 720

180 = 720(t)

Divide 180 by 720 to isolate for t.

t = 0.25 yrs , or 3 months

Source and for more info:
https://www.thoughtco.com/calculate-simple-interest-principal-rate-over-time-2312105