Question

Read the scenario.

June has $8,000 in an online savings account at six percent interest. She needs to reach $10,000 to pay off her credit cards.

How long does June have to save to reach her goal?

six years
four years
five years
three years

Answer 1

I think 4 because 6% of 8000 is 480. And 2000 divided by 480 is 4.166.

Answer 2

The answer is 5 years because you have to use the simple interest formula which is I=Prt . P equals the balance you started with so 8,000. R equals the rate or interest rate which is 6% or 0.06. T equals the time and i just put in the option 5 years just to guess which one it was and i was right. I=8,000x0.06x5 and that equals 2400 and then you add 8,000 and that gives you 10,400