Answer:
2 years
Step-by-step explanation:
Simple Interest Formula
I = Prt
where:
- I = total interest earned
- P = principal
- r = interest rate (in decimal form)
- t = time (in years)
Given:
- P = $2500
- r = 3% = 0.03
- I = $150
Substitute the given values into the formula and solve for t:
⇒ 150 = 2500(0.03)t
⇒ 150 = 75t
⇒ t = 150 ÷ 75
⇒ t = 2
Therefore, it will take 2 years to collect $150 in interest.
