Answer:
I will take around 1 year and 8 months to earn $ 45 of interest on this investment
Step-by-step explanation:
1. Let's review the information provided to us to answer the question correctly:
Interest earned = $ 45
Investment = $ 790
Annual simple interest rate = 3.4% = 0.034
2. How much time would it take to earn $45?
Let's recall the formula for calculating the simple interest of an investment:
A = P * (1 + rt)
Replacing with the values we already have:
835 = 790 + (1 + 0.034t).
Where t is the time we want to calculate
835 = 790 + 26.86t
26.86t = 835 - 790
26.86t = 45
t = 1.68 (Rounding to the next hundredth)
t ≅ 1 year and 8 months
