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Pavlova-9 [17]
3 years ago
7

You want to put $2,500 in a simple interest account.It has a 4% annual interest rate.How long will it take you to earn $200 in i

nterest?
Mathematics
1 answer:
prohojiy [21]3 years ago
7 0
It will take 2 years.

Year 1 :
4% 2.5k = 2.5k/100 × 4 = $100 in interest

$2.5k + $0.1k = $2.6k

Year 2 :
4% 2.6k = 2.6k/100 × 4 = $104 in interest

$100 + $104 = $204 > $200

There may be a simpler way to solve this using a formula for example, but I just solved this step by step. Please feel free to ask if you have any questions
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