Simple interest

Blake corey

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Joined
Feb 9, 2020
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How long will it take Php18450 to earn Php1340 if the interest rate is 6%


Is the t= I/pr formula needed for this to compute for how long the intetest rate?
 
Do you understand that learning mathematics is NOT just memorizing formulas, it is thinking?

If the interest rate is 6%= 0.06, in one year amount A will earn 0.06A interest. In n years, it will earn 0.06An interest. Here, A= Php18450 and the interest is Php1340 so 0.06(18450)n= 1340.

0.06(18450)= 1107 so 1107n= 1340. Since n is multiplied by 1107 to get n by itself you need to divide both sides by 1107.
 
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