Question

Andrew is saving up for a down-payment for his first car. Andrew invested $5,000 in an account earning 3.5% simple interest. He earned $1,050 in interest. For how many years was Andrew's money invested? A) 6 years B) 2 years C) 1.5 years D) 5 years

Answer 1

It is given in the question that

Andrew is saving up for a down-payment for his first car. Andrew invested $5,000 in an account earning 3.5% simple interest.

And the interest he earned is $1050.

Let Andrew's money was invested for x years .

Now we use the simple interest formula, which is

$I = P r t$

Substituting the given values in the formula , we will get

$1050 = 5000*0.035*x$

$1050=175x$

Dividing both sides by 175,

$x=6$

Therefore the correct option is A .