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12 August, 00:50

How long will it take to earn $1800 in interest if $6000 is invested at a 6% annual interest rate?

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  1. 12 August, 01:39
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    It will take 5 years.

    Step-by-step explanation:

    Let's find how long it will take, but first let's understand the equation.

    For simple interest, we use the equation:

    T = (1/R) * (((A+B) / B) - 1) where,

    A = interest amount

    B=invested money

    R=interest rate (in decimal form)

    T=time

    Because we want to earn $1800 in interest, then A=1800.

    Because we invested $6000, then B=6000.

    Because we are investing under an interest rate of 6%, then R=0.06.

    'How long will it take' means that T = not given, but its value is in 'years', since an annual rate was given.

    Using the equation for simple interest we write:

    T = (1/0.06) * (((1800+6000) / 6000) - 1), the solution is then:

    T=5; remember, because is an annual rate, T solution means 5 years.
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