Question

Suppose you deposit ​$600 in a bank account with a simple interest rate of 2.5​%. You want to keep your deposit in the bank long enough to earn at least ​$120 in interest. How long should you keep your deposit in the​ bank?

To earn at least ​$120 ​interest, you should keep your deposit in the bank for [blank] ​year(s).
​(Round up to the nearest​ year.)

Answer 1

1 ) the formula used to calculate the simple interest is

I = Ci*n, f his formula you obtain n , that is the time in years n = I/ Ci, where c is the initial capital, i is the earned interest , and i is he rate of interest,

n = 120/600 (0,025) = 120 / 15 = 8 , at 8 years, you will obtain $ 120 of INTEREST