SOLUTION: Wealey invested $6,500 in a mutual fund at a yearly rate of 3 3/4%. If he earned %975 in interest, how long has the money been invested? a. 2.5 years b. 3 years c. 4 years d. 4

Question 151818: Wealey invested $6,500 in a mutual fund at a yearly rate of 3 3/4%. If he earned %975 in interest, how long has the money been invested?
a. 2.5 years
b. 3 years
c. 4 years
d. 4.5 years
Answer by orca(409) (Show Source): You can put this solution on YOUR website!
Simple interest earned (I) can be found by the formula:

where P is the principal, r is the annual interest rate,and t is the number of years that the principal will be invested.
In this problem:
P=6500
r=3 3/4%=3.75%
I=975
Substituting into the formula, we have
975 = 6500*3.75%t
Solving the equation for t, we obtain:
975 = 65*3.75*t

t = 4
So choose option C.

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