the simple interest $i$ on an investment of $p$ dollars at an interest rate $r$ for $t$ years is given by $i…

the simple interest $i$ on an investment of $p$ dollars at an interest rate $r$ for $t$ years is given by $i = prt$. find the time it would take to earn $1400 in interest on an investment of $27,000 at a rate of 4.2%.

the simple interest $i$ on an investment of $p$ dollars at an interest rate $r$ for $t$ years is given by $i = prt$. find the time it would take to earn $1400 in interest on an investment of $27,000 at a rate of 4.2%.

Answer

Answer:

$t\approx1.23$ years

Explanation:

Step1: Identify given values

$I = 1400$, $P=27000$, $r = 0.042$

Step2: Rearrange the simple - interest formula

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

Step3: Substitute values into the formula

$t=\frac{1400}{27000\times0.042}$

Step4: Calculate the denominator

$27000\times0.042 = 1134$

Step5: Calculate the value of t

$t=\frac{1400}{1134}\approx1.23$