Question

# Aqua earns $450 in interest by putting $500 in the bank with a 15% interest rate. How long did she invest her money?

Answer

6 years.

- Q: What is the formula for simple interest? A: Simple Interest = (P × R × T)/100, where P is the principal, R is the annual interest rate, and T is the time in years.
- Q: What is the principal amount? A: The principal amount is $500.
- Q: What is the annual interest rate? A: The annual interest rate is 15%.
- Q: What is the interest earned by Aqua? A: The interest earned by Aqua is $450.
- Q: How long did Aqua invest her money? A: The time invested can be found by rearranging the formula to T = (100 x I) / (P x R), where I is the interest earned and T is the time.
- Calculation: T = (100 x 450) / (500 x 15) = 6.