Question

You want to put $2,000 in a simple intrest account.It has a 2.5% annual interest rate.How long will it take you to earn $500 in interest
A:1 Years B:6.25 Years C:10 Years D:25 Years

Answer 1

The answer is C ten years. 2.5 percent of 2000 is 50 so take 50 and divide it by 500 which equals 10

Answer 2

I = PRT......T = I / PR

500 / (2000)(.025) = T
500 / 50 = T
10 = T.......10 years