Question

You invest $275.00 in a money-market account that pays simple interest at a rate of 10%. How long must you leave your investment in the money-market account if you expect to earn $27.50 in interest?

a. 0.01 months c. 2 years b. 1 years d. 1 months

Answer 1

1 year

Explanation:

the formula is

T=i÷(rp)

t the time ?

i interest earned 27.5

p the principle 275

r interest rate 0.1

t=27.5÷(275×0.1)

t=27.5÷27.5

t=1 year