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Mnenie [13.5K]
3 years ago
8

Ben makes a deposit of $1,200 into a savings account. The bank calculates simple interest annually at a rate of 6%. Interest is

added every year on the anniversary of the initial deposit. How many years must Ben wait before his investment exceeds $1,500? Give your answer in years.
Mathematics
1 answer:
Semmy [17]3 years ago
6 0

Answer:

Ben must wait more than 4.2 years

Step-by-step explanation:

step 1

we know that

The simple interest formula is equal to

A=P(1+rt)

where

A is the Final Investment Value

P is the Principal amount of money to be invested

r is the rate of interest  

t is Number of Time Periods

in this problem we have

t=?\ years\\ P=\$1,200\\r=6\%=6/100=0.06\\A>\$1,500

substitute the values

1,200(1+0.06t)>1,500

Solve for t

Divide by 1,200 both sides

(1+0.06t)>1.25

Subtract 1 both sides

0.06t>1.25-1

0.06t>0.25

Divide by 0.06 both sides

t>4.2\ years

therefore

Ben must wait more than 4.2 years

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