Taylor has just won $4,250 from the 50/50 at the Sea Dog's game and decides to invest all of it. If he makes $1275 with a 5% interest rate, how long must he have had the money invested?

Question

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Aidan Gibson

14 August, 04:22

Taylor has just won $4,250 from the 50/50 at the Sea Dog's game and decides to invest all of it. If he makes $1275 with a 5% interest rate, how long must he have had the money invested?

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Answers (1)

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Ireland May · Answer 1

The money must have been invested for 6 years

Explanation:

To calculate the number of years for which the money had been invested, we simply make use of the simple interest formula

Mathematically;

I = PRT/100

according to the question, I is the interest earned = $1275, P is the amount invested = $4,250, R is the interest rate = 5% while T is the time we want to calculate

We can rewrite the simple interest formula to mean;

T = 100I/PR

T = (100 * 1275) / ((4250 * 5) = 127500/21,250 = 6 years