Question

you deposit $ 1000 into an account that earns 100 in interest. if the interest rate is 7% how long would you have kept the money in the account to get the interest

Answer 1

The interest formula is :

$I=P\times r\times t$

where I is the interest

P is the Initial amount

r is the rate of interest

and t is the time in years

From the problem,

P = 1000

I = 100

r = 7% or 0.07

Using the formula above, the time in years will be :

$\begin{gathered} 100=1000(0.07)t \\ t=\frac{100}{1000(0.07)}=1.43 \end{gathered}$

1.43 years