Answer:
[tex]t=6\ years[/tex]
Step-by-step explanation:
we know that
The simple interest formula is equal to
[tex]A=P(1+rt)[/tex]
where
A is the Final Investment Value
P is the Principal amount of money to be invested
r is the rate of interest
t is Number of Time Periods
in this problem we have
[tex]t=?\ years\\ P=\$75,000.00\\ A=\$95,250.00\\r=4\frac{1}{2}\%=4.5\%=4.5/100=0.045[/tex]
substitute in the formula above
[tex]95,250.00=75,000.00(1+0.045t)[/tex]
solve for t
[tex]1.27=1+0.045t[/tex]
[tex]0.045t=1.27-1[/tex]
[tex]0.045t=0.27[/tex]
[tex]t=6\ years[/tex]
