Question

How long does it need to keep $600 in an account that pays 2.75% annual simple interest to earn $264?

Answer 1

Answer:

16 years

Step-by-step explanation:

Principal amount (P) = $600

Rate of interest (R) = 2.75%

Simple interest (S.I.) = $264

Let t denotes time period.

$S.I.=\frac{PRT}{100}$

$264=\frac{600(2.75)t}{100} \\\\t=\frac{264(100)}{600(2.75)}$

$t=16$ years.  

Therefore,

interest of $264 will be earned in 16 years.