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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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
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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