Answer: 15 years
Step-by-step explanation: Begin by writing the interest formula shown below.
Interest = principal · rate · time
Filling in the formula, the interest is $270,000.
The principal or the amount invested is $150,000.
The rate is 12% or 0.12 and we don't know the time so we use the variable t.
So we have the equation 270,000 = (150,000)(0.12)(t).
On the right side of our equation, we multiply 150,000 times 0.12 to get 18,000 and we have 270,000 = 18,000t.
Now to solve for t, we divide both sides of the equation by 18,000 to get 15 = t which means that our principle must be invested for 15 years to earn $270,00 in interest.
