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Math Help - Simple Interest

  1. #1
    Senior Member
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    Exclamation Simple Interest

    An investment of $10 000 at 4% p.a. simple interest builds to $11 000. The number of months it takes to reach this amount is?

    I was just wondering if the answer is 30 months.
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  2. #2
    MHF Contributor
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    If you were to demonstrate your calculation, I expect it would clear up your wondering.

    Empirical Formula
    I = Prt -- Right?

    Given Information
    I = 11000 - 10000 = 1000
    P = 10000
    r = 0.04

    Algebra
    t = I/(Pr) = 1000/(10000*0.04) = ??? years = ?? Months
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  3. #3
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    It was just that this was a multiple choice question with the options:

    (A) 330
    (B) 27.5
    (c) 273
    (D) 23

    But no matter how many times I worked out the question using SI = Prt, it worked out to be 30, so I just wanted to make sure I wasn't getting dumber.
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