Question

How long will it take for an investment of R3000 to earn R960 interest at 8% per annum simple interest ?

pleas help solve

3960=3000(1 + 0.08 * n)

Answer 1

It will take 4 years to earn an interest of Rs.960 from Rs.3000 at the rate of 8% interest.

Explanation:

Principal amount `p=3000`

Rate of interest `r=8/100`

Number of years `n=?`

Absolute interest amount `i=960`

Simple interest of 8% on 3000 in `n` years earn `960`

Form an equation like this

`pxxrxxn=i`

Substitute the known values in the above equation.

`3000xx8/100xxn=960`

`n=960xx1/3000xx100/8=4`

It will take 4 years to earn an interest of Rs.960 from Rs.3000 at the rate of 8% interest.