Question

You put $600 in an account with a simple interest rate of 2.5%. How long does it take for the account to earn $45?

Answer 1

Answer:

$3\ years$

Step-by-step explanation:

we know that

The simple interest formula is equal to

$A=P(1+rt)$

where

A is the Final Investment Value

P is the Principal amount of money to be invested

r is the rate of interest  

t is Number of Time Periods

in this problem we have

$t=?\ years\\ P=\ 600\\ A=\ 600+\ 45=\ 645\\r=0.025$

substitute in the formula above  and solve for t

$645=600(1+0.025t)$

$t=[(645/600)-1]/0.025=3\ years$