Question

How long will it take 680 dollars to earn 102 dollars in simple interest at an annual interest rate of 3%? Show your work in an easy way.

Answer 1

Simple interest is where 3% of the original value is added on each year

goal number = $102

original number = $680
3% of $680 can be found by getting 1% and multiplying by 3
100% = original number = $680
100% / 100 = 1% so $680 / 100 = $6.80 = 1%
3% = $6.80 * 3 = $20.40

so each year the money rises by $20.40

to find out how many years it would take to get to $102:
$102 / $20.40 = 5 years