Answer to Question #267349 in Financial Math for Ayana Prica

Question

How long will Php60,000 accumulate to Php62,430 if the simple interest rate agreed is 1.50%?

Answer 1

$t =(\frac{1}{r}) (\frac{a}{p}-1)$

T= time in years

R= rate of interest = 1.50% = 0.015

A= final amount = 62,430

P= initial amount =60,000

$t = (\frac{1}{0.015}) (\frac{62430}{60000}-1)$

$t=(66.6667)(1.0405-1)$

$t=(66.6667)(0.0405)$

$t= 2.7$

It will take approximately 3 years