Question

Bonita deposited $1300 into a bank account that earned 5.75% simple interest each year. She earned $299 in interest before closing the account.
If no money was deposited into or withdrawn from the account, for how many years was the money in the account?

Answer 1

4 years

using I = PRT

then T = $\frac{I}{PR}$

calculate PR = 1300 × $\frac{5.75}{100}$ = 74.75, hence

T = $\frac{299}{74.75}$ = 4 years