Answer:
5 years.
Step-by-step explanation:
Simple interest is the easiest way to calculate the interest from any loan or any investment.
We know,
Simple Interest, I = P × n × r
Where,
P = Principal
n = number of years/periods
r = simple interest rate
Given,
P = $1,200
Simple Interest, I = $180
r = 3% = 0.03
Putting the values into the formula, we can get,
I = P × n × r
or, $180 = $1,200 × n × 0.03
or, $1,200 × n × 0.03 = $180 [Interchanging the sides]
or, $36 × n = $180
or, n = $180 ÷ $36 [Dividing both the sides by $36]
Therefore, number of years, n = 5
In 5 years, the $1,200 yield an interest of $180 at 3% simple interest.
