To calculate the time it would take to earn a specific amount of interest, we can use the formula for simple interest:
Interest = Principal x Rate x Time
Given:
Principal (P) = 2000
Interest (I) = 240
Rate (R) = 5%
Plugging in the values, we get:
240 = 2000 x 0.05 x Time
Solving for Time:
240 = 100 x Time
Time = 240 / 100
Time = 2.4 years
Therefore, it would take 2.4 years to earn 240 as interest on 2000 at a rate of 5%.
