Question

Dana wants to invest $3000 at 5% simple interest. How many years will it take for the total amount in her account to reach $4500

Answer 1

A = P(1 + rt)
4500 = 3000(1 + 0.05t)
4500 = 3000 + 150t
1500 = 150t
T =10 years

Answer 2

Answer: 10 years

Explanation:

We know that the total amount in an account eating simple interest after t years is given by :-

`A=P+Prt`, where P is the principal amount , t is the time and r is the rate of interest.

Given : P= $3000 , A = $4500 and r=0.05

Then , put all these values in the above formula we get

`4500=3000+3000(0.05)t\\\\\Rightarrow\ 4500-3000=150t\\\\\Righhtarrow\ t=(1500)/(150)=10`

Hence, it will take 10 years for the total amount in her account to reach $4500.