If $3840 is deposited into a bank account at a 5% interest rate how long will it take the account to make $960 in interest?

Answer 1

the underlying equation that we want to use to solve this one is

I = PRT

solving that for t(time) yields

T = I / PR

meaning that for this set of parameters the value here is

T = 960 / (3840 * 0.05)

T = 960 / 192

T = 5

meaning that it will take 5 years for the account to earn $960 in interest

Answer 2

To find S.I. (Simple Interest), we will use the following formula;

S.I. = (P * R * T)/100,

where, S.I. is $960,

P is the principal amount i.e. $3840,

R is the rate of interest i.e. 5% and

T is the time period, which we have to find.

960 = (3840 * 5 * T)/100

960 = 192 * T

T = 960/192

T = 5 months

Answer 3

Hi Laila,

Given the information provided above:

It will take the bank account five months to make $960 in interest at the 5% monthly interest rate upon depositing $3,840 into the given bank account.

5% of $3,840 is $19,200.

R19,200/100 = $192/month

$960/192 = 5 months' worth of interest