Question

Susan currently has an account balance of $1,336.60. Her initial deposit on the account was $820 and it earned 4.5% simple interest. How long has Susan held the account? (3 points)
9 years

14 years

22 years

36 years

Answer 1

The correct option will be :   14 years

Explanation

Current account balance of Susan is $1,336.60 and her initial deposit was $820

So, the amount of interest earned $= 1336.60-820= 516.60$ dollar

Formula for Simple Interest is: $I= P*r*t$, where $I$ is the amount of interest, $P$ is the initial amount, $r$ is the rate of interest in decimal and $t$ is the time duration in years.

Here, $I= 516.60, P= 820, r=4.5$% $= 0.045$

Now according to the above formula, we will get...

$I= P*r*t\\\\ 516.60=820*0.045*t\\\\ 516.60=36.90*t\\\\ t=\frac{516.60}{36.90}= 14$

So, Susan has held the account for 14 years.