How many months would it take to earn $3,300 on a deposit of $84,000 at 9 ½ %?
A) 4.14 months
B) 4.96 months
C) 11.2 months
D) 15.3 months
E) 25.4 months

Question

Quizplus · Accepted Answer

To calculate the time it takes to earn $3,300 in interest on a deposit of $84,000 at an annual interest rate of 9.5%, use the formula for simple interest: Interest = Principal × Rate × Time. Here, the interest is $3,300, the principal is $84,000, and the rate is 9.5% or 0.095 when expressed as a decimal. Rearranging the formula to solve for time (in years) gives Time = Interest / (Principal × Rate). Substituting the given values yields Time = $3,300 / ($84,000 × 0.095) = 0.4137 years. To convert years to months, multiply by 12 months/year, resulting in approximately 4.96 months.

How Many Months Would It Take to Earn $3,300 on a Deposit