Answer:
Step-by-step explanation:
1. A = P(1 + rt) is the formula for simple interest where A is the final amount, P is the principal amount, r is the interest rate (annual), and t is the number of time periods, or time in years (most often)
2. $25 of interest means your total amount will be $275, so A = $275. P = $250. r = .04. We are trying to find t.
3. $275 = $250(1+.04t)
4. (275/250)(1.04) = t t = 1.05
5. This means you will need to wait 2 years to earn $25 in interest
