If a couple invests $5000 in an account that that earns a 3% interest rate, how long will they need to invest it to earn $1200 in interest?

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Answer 1 · 2016-11-14T12:17:57

#\color(indianred)(8\text( years))#

Apply formula #I=Prt#
#I# is interest, #P# is principal/original, #r# is interest rate and #t# is time.

Here, we have:
#I=1200#
#P=5000#
#r=0.03#

#1200=(5000)(0.03)(t)#
The question wants you to find #t#.

Isolating said variable (you may need to use a calculator):
#1200/(5000\times0.03)=t, t=8#

#\text(You need )\color(red)(8)\text( years to earn )$1200\text( in interest.)#