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2. How long will a principal of Php 30,000 earn an interest equal to Php 4,500 at 5% simple interest?​

Sagot :

We need to find the term of investment, using the formula of simple interest, which is I = P × R × T, where P is principal, R is interest rate, T is time.

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We need to find time, so T = [tex]\sf\large{ \frac{l}{P\:×\:R}}[/tex], In our case interest is 4500 pesos, interest rate is 3% = 0.03 in the definition of formula and principal is 30000.

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T = [tex]\sf\large{ \frac{4500}{30000\:×\:0.03}}[/tex] = 5

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Answer: So, the answer is 5 years(or another time periods, depends on the compounding periods).