I=$720, P=$1000, r=9% Find the amount of the time.
2 answers:
Conclusion:
The duration is 8 years.
Detailed Breakdown:
Simple interest is the interest accrued from the principal over time without adding onto the principal for future interests, making it consistent across periods as long as the rate and duration remain unchanged.
The interest amount depends on three key factors: Capital, rate, and time, represented by the equation:
I = P * r * t
In this instance, I equals $720, P is $1000, and r at 9% translates to 0.09 in decimal form.
Substituting into the formula gives:
720=1000*0.09*t
Calculating 1000 multiplied by 0.09 gives:
720=90*t
To solve for t, divide both sides by 90:
8=t
Since t is in years, we confirm that the duration is 8 years.
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