Question

TJ invested $8000 in a bond at a yearly rate of 4% simple interest. He earned $1120
in interest. How long was the money invested?

Answer 1

Answer:

3.5 years (3 years 6 months)

Step-by-step explanation:

You are going to use the simple interest formula for this:

$t=\frac{I}{Pr}$

P = initial balance

r = annual interest rate

I = interest

First, change 4% into a decimal:

4% -> $\frac{4}{100}$ -> 0.04

Now, plug in the values into the equation:

$t=\frac{1,120}{(8,000)(0.04)}$

$t=3.5$

The money was invested for 3.5 years (3 years 6 months).