Question

You want to put $8,000 in a simple interest account. It has a 2% annual interest rate. How long must you invest that money to earn $400 in interest?

Answer 1

Simple interest = starting amount x time (in years) x rate
8000(0.02)(t)=400
160t= 400
t= 400/160 =2.5 Years
2.5 years will be 2 years and 6 months

Answer 2

I = prt is the formula for simple interest
400 = 8000* .02 * t
400 = 160 * t
2.5 = t
2.5 years to earn $400 interest