Question

In what time will an investment of Php 14,200.00 accumulate to Php 19,600.00 at 11 % simple interest

Answer 1

Given:

Principal (P) =14, 200

Rate(R) =11

Amount(A) = 19, 600

Amount = Principal + Interest

⇒Interest = Amount - Principal

⇒ Intrest (I) = 19600 - 14200 =5400

Using the Simple interest formula below:

$I=\frac{P\times R\times T}{100}$

Substitute the values for I, R and P. Hence solve for T

$5400=\frac{14200\times11\times T}{100}$

$5400=142\times11\times T$

$5400=1562T$

Divide both-side of the equation by 1562

$T=3.457$

Hence, time taken will be 3.5 years approximately.