Calculate the time taken for an investment of K4 000 earing K1 040 interest at 6.5% p.a. simple interest?

To calculate the time taken for an investment to earn K1 040 interest at 6.5% p.a. simple interest, we can use the formula:

Interest = Principal x Rate x Time

Given:
Principal (P) = K4 000
Interest (I) = K1 040
Rate (R) = 6.5% = 0.065

Substitute the values into the formula:

K1 040 = K4 000 x 0.065 x Time

Solve for Time:

Time = K1 040 / (K4 000 x 0.065)
Time = 16 years

Therefore, it will take 16 years for an investment of K4 000 to earn K1 040 interest at 6.5% p.a. simple interest.

Formula: I = P - R - T

Where:
I = Interest earned
P = Principal (initial investment)
R = Annual rate of interest
T = Time period

Given:
I = K1 040
P = K4 000
R = 6.5% p.a. simple interest

We need to calculate T:

T = I / (P - R)
T = K1 040 / (K4 000 - 0.065)
T = K1 040 / K260
T = 4 years

Therefore, it took 4 years for the investment of K4,000 to earn K1,040 interest at 6.5% p.a. simple interest.