Question

You put $500 in your bank account. With an interest rate of 5%, how long will it take the account to reach $600?

Answer 1

Hi there! $500 is currently in the bank and you earn 5% interest. 500 * 5% (0.05) is 25. You earn $25 in interest in 1 year. 500 is 100 a way from 600. 100/25 is 4. It will take 4 years for the account to reach $600.

Answer 2

5% = $ 25 from $ 500
$ 600/25 = 24