Jimmy Jim invests $88 in a bank account at 6%. How many months (round up) does he need to leave his money in to buy a $132 blackberry playbook?

Question

Jimmy Jim invests $88 in a bank account at 6%. How many months (round up) does he need to leave his money in to buy a $132 blackberry playbook?

Answer 1

Hi Dylan,

 

Let's begin by calculating the interest amount (I) needed to bring up Jim's investment amount to the price of the blackberry playbook:

    I = 132 - 88 = $44

 

Next, let's write the Simple Interest formula and plug in all our known values and solve for time (t):

    I = PRT

         I (Interest amount) = $44

         P (Principal amount) = $88

         R (interest Rate) = 6% = 6/100 = 0.06

         T (Time in years) = unknown

    44 = (88)(0.06)(T)

    44 = 5.28T

    T = 44/5.28

    T = 25/3 years

 

Finally, let's convert T (time in years) in years to t (time in months):

    t = (25/3)(12)

    t = (25)(12)/3

    t = (25)(4)

    t = 100 months

 

Thanks for submitting this problem and glad to help.

 

God bless, Jordan.