Question

Susan currently has an account balance of $1,336.60. Her initial deposit on the account was $820 and it earned 4.5% simple interest. How long has Susan held the account? (3 points)

9 years

14 years

22 years

36 years

Answer 1

The correct option will be : 14 years

Step-by-step explanation

Current account balance of Susan is $1,336.60 and her initial deposit was $820

So, the amount of interest earned
`= 1336.60-820= 516.60` dollar

Formula for Simple Interest is:
`I= P*r*t`, where
`I` is the amount of interest,
`P` is the initial amount,
`r` is the rate of interest in decimal and
`t` is the time duration in years.

Here,
`I= 516.60, P= 820, r=4.5`%
`= 0.045`

Now according to the above formula, we will get...

`I= P*r*t\\\\ 516.60=820*0.045*t\\\\ 516.60=36.90*t\\\\ t=(516.60)/(36.90)= 14`

So, Susan has held the account for 14 years.