Question
Kofi invested 150,000.00 at 2.5% per annum. How long will it take this amount to yield an interest of 11,250.00?
Answers
GPT 3.5
To calculate the time it will take for the investment to yield an interest of 11,250.00, we can use the formula for simple interest:
Interest = Principal x Rate x Time
Given:
Principal (P) = 150,000.00
Rate (R) = 2.5% = 0.025
Interest (I) = 11,250.00
Substitute the known values into the formula:
11,250.00 = 150,000.00 x 0.025 x Time
Simplify the equation:
11,250.00 = 3,750.00 x Time
Divide both sides by 3,750.00:
Time = 11,250.00 / 3,750.00
Time = 3
Therefore, it will take 3 years for an investment of 150,000.00 at a rate of 2.5% to yield an interest of 11,250.00.
Interest = Principal x Rate x Time
Given:
Principal (P) = 150,000.00
Rate (R) = 2.5% = 0.025
Interest (I) = 11,250.00
Substitute the known values into the formula:
11,250.00 = 150,000.00 x 0.025 x Time
Simplify the equation:
11,250.00 = 3,750.00 x Time
Divide both sides by 3,750.00:
Time = 11,250.00 / 3,750.00
Time = 3
Therefore, it will take 3 years for an investment of 150,000.00 at a rate of 2.5% to yield an interest of 11,250.00.