How many days will it take for $1500 to earn $16 interest if it is deposited in a bank paying simple interest at the rate of 4%/year? (Use a 365-day year. Round your answer up to the nearest full day.)

Question

Brandon Weaver

Business

6 October, 13:36

How many days will it take for $1500 to earn $16 interest if it is deposited in a bank paying simple interest at the rate of 4%/year? (Use a 365-day year. Round your answer up to the nearest full day.)

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Answers (1)

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Skyler · Answer 1

97 days

Explanation:

In simple interest method, the interest is calculated by the following formula

I = P x R x T

I = interest

P = principal amount

R = interest rate

T = Time

In this case

I=$16

P=$1500$

R = 4% or 0.04%

T = time

$16 = $1500 x 0.04 x Time

$16 = 60 x Time

Time = 16/60

time = 0.2666 year.

time in days = 0.26666 x 365 days

=97.333 days

=97 days