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

Question

2482 views around the world

You can reuse this answer
Creative Commons License

Answer 1 · 2018-05-11T15:45:02

#t# = #0.25# years

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