Question

Gloria deposited $500 into a bank account that earned 7. 5% simple interest each year. She earned $225 in interest before closing the account. No money was deposited into or withdrawn from the account. How many years was the money in the account? Round your answer to the nearest whole year. Enter your answer in the box. Years.

Answer 1

The number of years in which the money is in the account is 6 years.

What is simple interest?

Simple interest denotes the amount of payment that is received or paid by a person in return for anything pledged or given a loan.

The interest computed on the principal amount for a specified duration of time and rate of interest is called simple interest.

The formula of simple interest:

$\text{SI}= \text{P}\times r \times t$

Where, (P) stands for principal, (r) for interest rate, and (t) is for the time period.

Computation of a number of years:

According to the given information,

P=$500,

r=7.5%,

t=?

SI= $225

Now, substitute the given values in the above formula, we have:

$\text{SI}= \text{P}\times r \times t\\\\\ 225=\ 500\times\ 7.5\%\times t\\\\t= 6 \text{Years}$

Therefore, the number of years is 6 years.

To learn more about the simple interest, refer to:

brainly.com/question/2793278