Question

you deposit $2000 in a savings account earning 5% simple interest. How long will it take for the balance of the account to be $3800? (PLEASE EXPLAIN)

Answer 1

1.8 years

Explanation:

Step one:

given data

P= $2000

Rate= 5%

Final amount A= $3800

Step two

A= P(1+rt)

substitute

3800=2000(1+0.05*t)

solve for t

3800=2000(1.05t)

3800=2100t

divide both sides by 2100

t= 3800/2100

t=1.8 years

it will take 1.8 years