Question

After how many years will 25,600 earn a simple
interest of 19,200 at 12.5% p.a.?

Answer 1

To find the time (in years) it takes to earn a simple interest, you can use the formula:

Simple Interest = P * R * T

Where:
- P is the principal amount (initial investment),
- R is the annual interest rate (in decimal form),
- T is the time in years.

In your case:
19,200 = 25600 * 0.125 * T

Now, solve for T:

T = 19,200/25,600 * 0.125

Calculate this to find the time (in years):