Calculate the time it would take $7000 dollar investment to earn $1400 of simple interest at a rate of 4% per annum.

Answer: 5 years

Step-by-step explanation:

Hi, to answer this question we have to apply the simple interest formula:

I = p x r x t

Where:

I = interest

P = Principal Amount

r = Interest Rate (decimal form)

t = years

Replacing with the values given

1400 = 7000x (4/100) x t

Solving for t:

1400 = 7000 x 0.04 x t

1400 = 280 t

1400/280 = t

t = 5 years

Feel free to ask for more if needed or if you did not understand something.