How long must $542 be invested at a rate of 7% to earn $303.52 in interest

Answer 1

Use simple annual interest formula: I =Prt ( I= interest; P=present value; r= rate; t = time)

I =$303.52 P =$542 and r =0.07 (7%)

Solve:

303.52 = 542*0.07*t

t = 303.52/(542*0.07)

t = 8yrs

So it would take 8yrs