You put $474 into a savings account with an interest rate of 4% which earns $56.88 over a period of time. How long was the period of time?

2 Answers
Jan 9, 2018

See the process steps below;

Explanation:

You can get the period of time which he acquired that given intrested with;

I = (PRT)/100I=PRT100

Where;

I = "Interest" = $56.88I=Interest=$56.88

P = "Principal" = $474P=Principal=$474

R = "Rate" = 4%R=Rate=4%

T = "Period of Time" = ?yrsT=Period of Time=?yrs

Making TT the subject of formula..

I = (PRT)/100I=PRT100

I/1 = (PRT)/100I1=PRT100

Cross multiplying..#

100I = PRT100I=PRT

Dividing both sides by PRPR

(100I)/(PR) = (PRT)/(PR)100IPR=PRTPR

(100I)/(PR) = (cancel(PR)T)/cancel(PR)

(100I)/(PR) = T

:. T = (100I)/(PR)

Now, substituting the parameters..

T = (100 xx 56.88)/(474 xx 4

T = 5688/1896

T = 3yrs

Hope this helps!

Jan 9, 2018

3 Years

Explanation:

Interest Earned for 1 Year =474times4/100=18.96

So to calculate Period of Time(i.e. No. of Years) we have to divide 56.88 by 18.96

So we get 56.88/18.96=3 Years