$4 353.75 simple interest was collected when $12900 was invested at 6.75% per annum.Calculate the number of years for which the principal was invested
Question
12900 was invested at 6.75% per annum.Calculate the number of years for which the principal was invested
Solution
To calculate the number of years, we can use the formula for simple interest which is I = PRT, where I is the interest, P is the principal amount, R is the rate of interest, and T is the time in years.
In this case, we know the interest (I) is 12,900, and the rate of interest (R) is 6.75% or 0.0675 in decimal form. We want to find the time (T).
Rearranging the formula to solve for T gives us T = I / (P * R).
Substituting the given values into the formula gives us T = 4353.75 / (12900 * 0.0675).
Now, we just need to do the calculation.
T = 4353.75 / 870.75 = 5 years
So, the principal was invested for 5 years.
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