Question

Pam open a bank account with $200 deposit that account had a simple interest rate of 4.6% her most recent bank statement shows a balance of $328.80 if she made no deposits or withdrawals how long ago was the account opened ?

Answer 1

Answer:

$t=14\ years$

Step-by-step explanation:

we know that

The simple interest formula is equal to

$A=P(1+rt)$

where

A is the Final Investment Value

P is the Principal amount of money to be invested

r is the rate of interest  

t is Number of Time Periods

in this problem we have

$t=?\ years\\ P=\ 200\\ A=\ 328.80\\r=0.046$

substitute in the formula above  and solve for t

$328.80=200(1+0.046t)$

$(328.80/200)=(1+0.046t)$

$t=[(328.80/200)-1]/0.046$

$t=14\ years$