Question

Corey is trying to save money to buy a new TV. He invests $800 into an account paying 6.5% simple interest. For how long must he save if the TV costs $950?

Answer 1

Answer:B. 3 years

Step-by-step explanation:

Answer 2

Time = 2.88 years ≈ 3 years

Step-by-step explanation:

Data provided in the question:

Amount invested = $800

Simple rate of interest = 6.5% = 0.065

Amount to be saved = $950

Now,

Final amount = Principle + Interest gained

Using simple interest formula

Interest gained = Principle × Rate × Time

or

= $800 × 0.065 × Time

thus,

$950 = $800 + $800 × 0.065 × Time

or

$150 = $52 × Time

or

Time = 2.88 years ≈ 3 years