Question

*WILL GIVE 15 POINTS PLEASE HELP* You want to put 2500 in a simple interest account. It has 4% annual interest rate. How long must you invest that money to earn $500 in interest?

A. 1.25 years
B. 2.5 years
C. 5 years
D. 20 years

Answer 1

it is C because 4% of 2500 is 100 and so it will take 5 years to make $500.

I hope that helps

Answer 2

just fyi, if you spend x points on question, each user gets x/2 points (rounded up or down, I don't remember)

simple interest formula is

I=PRT

I=interest

P=principal

R=rate in decimal

T=time in years

assuming you mean that the principal is $2500 and not 2500 cents or 2500 of some other currency

interest=500

R=4%=0.04

I=PRT

500=(2500)(0.04)(T)

500=100T

divide both sides by 100

5=T

answer is 5 years

C is answer