Simple interest

Question

Jon invested $5,100 at 5.50% p.a. simple interest. How much time is needed for the investment to grow to at least $5,330?

The answer is not 0.82

Answer 1

The formula for simple interest is I=prt. In this case, isolate t. i.e.I/pr=t. Remember time will be in months! Subtract the principle from the total investment to find the interest. Convert the rate into a fraction to make it easier to calculate with the principle then divide into the interest. Hope this helps

Anne