After 5 years , the interest earned on the account will be <u>25$</u>
The account will have 255$ after <u>11 years</u>
Step-by-step explanation:
Details are given in the question-
Principal= 200$
Rate of Interest= 2.5% annual (Simple Interest)
Interest Dave earns after 5 years
We know that Simple Interest (SI)= (Principal*Rate*Time)/100 ... Equation 1
Substituting the values, we get
SI= 200*2.5*5/100= 2*2.5*5
Interest earned by Dave after 5 years = 25$
The period in which the principal would amount to 255$
We know that SI=Amount- Principal
SI=255$-200$= 55$
From Equation 1 SI=P*R*T/100
Thus T= SI*100/(P*R)
Putting the values, we get
T= 55*100/(200*2.5)
T=11 years
Thus, Amount of 200$ would amount to 255$ in 11 years at an interest rate of 2.5% annually
