Question

55) Louis started a simple interest savings account with $1500 that earned 3.5% interest. He left the account untouched until some

55) Louis started a simi
time later when he withdrew all the money in that account, which totaled $1683.75. How long did Louis leave his money in the
account? years

Answer 1

3.5 years

Explanation:

Each year, Louis earned

$1500×0.035 = $52.50

in interest.

The amount of interest that had been credited to his account at the time of withdrawal was ...

$1683.75 -1500.00 = $183.75

Then the length of time the money had been in the account was ...

$183.75/($52.50/yr) = 3.5 yr

_____

Comment on the problem

We have assumed the account earned simple interest. Given the neatness of the answer, we believe that to be a correct assumption.