Question

How many months would it take Megan Dunstall to earn $618.75 simple interest on the $15,000 in hersavings account, at a 5.5% interest rate?

Answer 1

Answer:

It will take 9 months to make the interest

Explanation:

Given:

Interest on amount saved = $618.75

Amount saved = $15,000

rate = 5.5% = 0.055

To find:

the time it will take to make that interest

To determine the time, we will apply the simple interest formula:

$\begin{gathered} I=\text{ PRT} \\ where\text{ P = principal = 15000} \\ R\text{ = rate = 0.055} \\ T=\text{ time} \\ I=\text{ 618.75} \end{gathered}$

substitute the values into the formula:

$\begin{gathered} 618.75\text{ = 15000 }\times\text{ 0.055 }\times\text{ }T \\ 618.75\text{ = 825T} \\ \\ divide\text{ both sides by 825:} \\ \frac{618.75}{825}\text{ = T} \\ \\ T\text{ = 0.75} \end{gathered}$$\begin{gathered} T=\text{ 0.75 year} \\ \\ we\text{ need to convert to months:} \\ 1\text{ year = 12 months} \\ 0.75\text{ year = 0.75 }\times12 \\ =\text{ 9 months} \end{gathered}$

It will take 9 months to make the interest