Answer:
4 years
Step-by-step explanation:
Simple interest is based on the principal amount of a loan or deposit, whereas compound interest is based on the principal amount and the interest that accumulates on it in every period.
Simple Interest = P x r x n
where P = Principal amount, r = Annual interest rate, n = Term, in years
6% = 6 ÷ 100 = 0.06 so r = 0.06
Therefore,
Simple Interest = P x r x n
252 = 1050 x 0.06 x n
252 = 63n
n = 4
Therefore, he will earn $252 in interest on an initial investment of $1,050 at 6% simple interest over 4 years
Answer:
The time taken in interest is 4 years.
Step-by-step explanation:
As per given question we have provided that :
Here's the required formula to find the time:
[tex]{\longrightarrow{\pmb{\tt{I= \dfrac{PRT}{100}}}}}[/tex]
Substituting all the given values in the formula to find the Principal :
➠ [tex]{\sf{I= \dfrac{PRT}{100}}}[/tex]
➠ [tex]{\sf{I= \dfrac{P \times R \times T}{100}}}[/tex]
➠ [tex]{\sf{252= \dfrac{1050 \times 6 \times T}{100}}}[/tex]
➠ [tex]{\sf{252= \dfrac{6300 \times T}{100}}}[/tex]
➠ [tex]{\sf{252= \dfrac{63 \cancel{00} \times T}{1 \cancel{00}}}}[/tex]
➠ [tex]{\sf{252 = 63 \times T}}[/tex]
➠ [tex]{\sf{T = \dfrac{252}{63}}}[/tex]
➠ [tex]{\sf{T = \cancel{\dfrac{252}{63}}}}[/tex]
➠ [tex]{\sf{T = 4 \: years}}[/tex]
[tex]\star{\underline{\boxed{\sf{\red{Time = 4 \: years}}}}}[/tex]
Hence, the time taken is 4 years.
[tex]\rule{300}{2.5}[/tex]
