Question

Suppose Vicky deposits $19.00 into a savings account. The interest rate is 4% per year. Find the number of years it takes to earn $4.56 in simple interest. Enter your answer.

Answer 1

Explanation:

Simple Interest formula S.I = Principal * rate * time

S.I = P * r *t

In this case Simple interest ; S.I = $4.56

Principal; P = $19.00

rate; r = 4% or 0.04 as a decimal

t = total duration of investment in years.

Next, plug in the numbers in the S.I formula and solve for t

4.56 = 19 * 0.04 * t

4.56 = 0.76t

Divide both sides by 0.76;

4.56 / 0.76 = t

t = 6

Therefore, it will take 6 years to earn a simple interest of $4.56