Question

Jenny's parents deposit $10,000 for her college tuition in an account with a 3% simple interest rate. How long will it take to earn $3600 in interest?

Answer 1

Interest = Principle * rate * time
P = 10,000
R = 3% = 0.03
T (we need to solve for t
I = 3600

now we sub..
3600 = (10,000)(0.03)(t)
3600 = 300t -- divide both sides by 300
3600/300 = t
12 = t

check..
I = prt
3600 = (10000)(0.03)(12)
3600 = (300)(12)
3600 = 3600 (correct)

It would take 12 years