The problem shown in the image involves calculating the number of years it will take for an investment of Php 130,000 to generate an interest of Php 20,000 at an interest rate of 5% per annum. We can solve this using the simple interest formula:

$I = P \times r \times t$

Where:

• $I$ is the interest (Php 20,000),
• $P$ is the principal amount (Php 130,000),
• $r$ is the interest rate (5% or 0.05),
• $t$ is the time in years (which we need to find).

Rearranging the formula to solve for $t$:

$t = \frac{I}{P \times r}$

Now substituting the given values:

$t = \frac{20,000}{130,000 \times 0.05}$

$t = \frac{20,000}{6,500} = 3.08 \text{ years}$

Thus, it will take approximately 3.08 years for the investment to generate an interest of Php 20,000 at an annual interest rate of 5%.

Would you like further details or explanations?

Here are 5 related questions for you to explore:

1. How is compound interest different from simple interest?
2. What would the time be if the interest rate increased to 6% per annum?
3. How much interest would the company earn in 5 years with the same conditions?
4. What is the total amount after 3.08 years, including the interest?
5. How can we calculate the future value of an investment using compound interest?

Tip: Always ensure you distinguish between simple and compound interest when solving investment-related problems, as they produce different outcomes.