Question

Megan Dunstall wants to know how many months it would take for $15,000 to earn $618.75 at 51/2% of simple interest?

Answer 1

Answer: 9 months.

Step-by-step explanation:

Simple interest = Principal x rate(in decimal)  x Time(in years)

Given: Principal = $15,000 , rate = $5\dfrac12\%=\dfrac{11}{2}\%= 5.5\%= 0.055$

Interest =  $618.75

let t= time

Then,

$618.75=15000\times 0.055\times t\\\\\Rightarrow\ t=\dfrac{618.75}{15000\times0.055}\\\\\Rightarrow\ t= 0.75\ or\ t=\dfrac34\ year$

1 year =12 months

$\dfrac34\ year=\dfrac34\times12 = 9\ months$

Hence, it will take 9 months.