In how many months will $6,000 earn interest of $2,700 at 15%?
A) 3 months
B) 36 months
C) 4 months
D) 60 months
E) 1 month

Question

Quizplus · Accepted Answer

To find the number of months it takes for $6,000 to earn $2,700 in interest at a 15% annual rate, we use the formula for simple interest: I = PRT, where I is the interest earned, P is the principal amount, R is the annual interest rate (as a decimal), and T is the time in years. Rearranging the formula to solve for T gives us T = I / (PR).Given:- I = $2,700- P = $6,000- R = 15% per year = 0.15Plugging these values into the formula gives us T = $2,700 / ($6,000 * 0.15) = $2,700 / $900 = 3 years.Since the question asks for the number of months, we convert years to months by multiplying by 12: 3 years * 12 months/year = 36 months.

In How Many Months Will $6,000 Earn Interest of $2,700