Question

You put $500 in your bank account. With an interest rate of 5%, how long will it take the account to reach $600?

Answer 1

It takes 4 time just use a calculatotor and put 500 + 5% = 525

Answer 2

Interest = Amount - Principal = 600 - 500 = 100.

From Simple Interest, I = PRT/100

Time, T = 100I/PR

Time T = (100 * 100) / (500 * 5) = 4

Time = 4 years.