t = 6.25 years
(about 6 years 3 months)
Equation:
t = (1/r)(A/P - 1)
Calculation:
First, converting R percent to r a decimal
r = R/100 = 4%/100 = 0.04 per year,
then, solving our equation
t = (1/0.04)((2500/2000) - 1) = 6.25
t = 6.25 years
The time required to get a total amount, principal plus interest, of $2,500.00 from simple interest on a principal of $2,000.00 at an interest rate of 4% per year is 6.25 years (about 6 years 3 months).
