You put $474 into a savings account with an interest rate of 4% which earns$56.88 over a period of time. How long was the period of time?

Jan 9, 2018

See the process steps below;

Explanation:

You can get the period of time which he acquired that given intrested with;

$I = \frac{P R T}{100}$

Where;

I = "Interest" = $56.88 P = "Principal" =$474

R = "Rate" = 4%

T = "Period of Time" = ?yrs

Making $T$ the subject of formula..

$I = \frac{P R T}{100}$

$\frac{I}{1} = \frac{P R T}{100}$

Cross multiplying..

$100 I = P R T$

Dividing both sides by $P R$

$\frac{100 I}{P R} = \frac{P R T}{P R}$

$\frac{100 I}{P R} = \frac{\cancel{P R} T}{\cancel{P R}}$

$\frac{100 I}{P R} = T$

$\therefore T = \frac{100 I}{P R}$

Now, substituting the parameters..

T = (100 xx 56.88)/(474 xx 4#

$T = \frac{5688}{1896}$

$T = 3 y r s$

Hope this helps!

Jan 9, 2018

$3$ Years
Interest Earned for $1$ Year $= 474 \times \frac{4}{100} = 18.96$
So to calculate Period of Time(i.e. No. of Years) we have to divide $56.88$ by $18.96$
So we get $\frac{56.88}{18.96} = 3$ Years