Question

You deposit $4000 into a savings account. the account earns 2.75% simple interest. how long will it take to earn $220 in interest?

Answer 1

Simple interest means that you only need to find the interest once and then keep adding it on every year. In this case, the interest would be 2.75% of $4000 every year, which is 110. 

In 2 years, you'll have 220 because every year you gain 110 in interest.