Answer:
Using simple interest formula:
[tex]\text{I} = \frac{P \times R \times T}{100}[/tex]
As per the given statement:
$500 give $50 interest at the rate of 5% per year.
To find the time T;
Here, P = $500 , I = $50 , R = 5%
Substitute these given values in the given formula we have;
[tex]50 = \frac{500 \times 5 \times T}{100}[/tex]
Simplify:
[tex]50 = 5 \times 5 \times T[/tex]
[tex]50 = 25 T[/tex]
Divide both sides by 25 we get;
T = 2 years
Therefore, in 2 years will $500 give $50 interest at the rate of 5% per year
