Question

Ye Win invests $1,902 at 11% pa simple interest and this investment grows over time to $2,044.15. Calculate the time period (t) over which Ye Win made the investment. Give your answer in days rounded to the nearest day.

Answer 1

Answer-

Initial investment ( Principal ) = P = $ 1902
Amount = A = $ 2044.15
Interest rate ( simple ) = R = 11 % = 0.11

Number of days required for the initial investment will grow (N) = ?

Amount = Principal + Interest
Interest = Amount - Principal
Interest = $ 2044.15 - $ 1902
Interest = $ 142.15
Interest = PNR

P x N x R = $ 142.15
Substituting the values of P and R in the equation we get

$ 1902 x (N / 365) x 0.11 = $ 142.15
$ 1902 x N x 0.11 = $ 142.15 x 365
N = $ 142.15 x 365 / ( $ 1902 x 0.11)

N = 51884.75 / 209.22
N = 247.99 ~ 248

Therefore the number of days = 248 days