Chapter 6.6, Problem 23IP

To determine

To find: Time.

Answer to Problem 23IP

Time $=t=42$ months.

Explanation of Solution

Given information:

Principal amount $=\$8000$

Simple interest $=\$1680$ .

Interest percent $=6\%$

Concept:

  $I=prt$

Where

  $I=$ Simple interest.

  $p=$ Principal amount

  $t=$ time in years.

  $r=$ Annual interest rate.

Calculation:

From given information

Principal amount $=p=\$8000$

Simple interest $=I=\$1680$ .

Interest percent $=R=6\%$

We know

Annual interest rate $=r=\frac{R}{100}$

  $\begin{array}{l}\Rightarrow r=\frac{6}{100}\\ \Rightarrow r=0.06\end{array}$

On substituting values in above mentioned concept

We get

  $\begin{array}{l}I=prt\\ \Rightarrow 1680=\left(8000\right)\left(0.06\right)\left(t\right)\\ \Rightarrow 1680=480t\\ \Rightarrow t=\frac{1680}{480}\\ \Rightarrow t=3.5\end{array}$

Therefore,

Time $=t=3.5$ years.

We know

  $1$ year $=12$ months.

Using that

We get

Time $=t=3.5\times 12=42$ months.