Question

Rolands mom save money for college. She put $5,000 into a savings account with a 4% interest rate. When she withdrew it had earned $400 in interest how many years was the Money in the Bank

Answer 1

Answer: 2 years

Explanation:

First, convert your rate into a decimal

r = R/100 = 4%/100 = 0.04 per year,

then, solving our equation

t = 400 / ( 5000 × 0.04 ) = 2

t = 2 years