Answer:
2yrs
Step-by-step explanation:
Given parameters:
Amount of interest earned = $40
Principal = $400
Interest rate = 5%
Unknown:
Time taken for the money to be in bank = ?
Solution:
The formula for interest is given as:
I = [tex]\frac{PRT}{100}[/tex]
Where I is the interest
P is the principal
R is the rate
T is the time
So;
100I = PRT
T = [tex]\frac{100I }{PR}[/tex] = [tex]\frac{100 x 40}{400 x 5}[/tex] = 2yrs
