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| Math Central | Quandaries & Queries |
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Question from sandeep, a student: Use the formula I = Prt to solve. Damon deposits $500 into a savings account that pays simple interest |
Hi Sandeep,
$P$ is the principal, the amount of money invested so in your case that's $\$500$ and $I$ is the the amount of interest you earn so you want that to be $\$130.$ $t$ is the time in years and that is what you don't know. Thus from $I = P r t$ you have
\[\$130 = \$500 \times 0.0065 \times t\]
Solve for $t.$
Penny
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