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5 September, 00:55

How long will it take to earn $568.75 in interest if $2500 is invested at a 6.5% annual interest rate?

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  1. 5 September, 01:11
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    Interest amount earned = $568.75

    Principal amount invested = $2500

    Rate of interest per year = 6.5%

    Let us assume the time taken to gain the interest amount = x

    Then

    Interest = Principal * Rate * Time

    568.75 = 2500 * (6.5%) * x

    568.75 = 2500 * (6.5/100) * x

    568.75 = 25 * 6.5 * x

    568.75 = 162.50x

    x = 568.75/162.50

    = 3.5 years

    So it will take 3.5 years to earn the interest amount mentioned in the question. I hope the procedure is simple enough for you to undertsand.
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