Question

Silvia wants to buy a car that costs $9,768.00. She deposits $6,600.00 into a savings account that pays simple interest at a rate of 8%. How long must Silvia leave the money in the savings account to be able to buy the car?

Answer 1

Comparing the cost of the car to the deposit, $3,168.00 the amount required to be added to the deposit
$3,168 is the interest
rate = 8%
time = T
principal = 6,600.00
I = ( PRT)/100
T = 100 I/PR
=(100*3168)/(6600*8)
= 6
She should leave the money for six years.