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You put $500 in your bank account. With an interest rate of 5%, how long will it take the account to reach $600?

You put $500 in your bank account. With an interest rate of 5%, how long will it take-example-1
User RobLabs
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Hello! So first off, let's see how much interest is earned annually by multiplying principal and percent. 500 * 5% (0.05) is 25. That's $25 annually. We are trying to figure out how many years it will take to reach $600, and you already have $500 in the bank account. 600 - 500 is 100. 100/25 is 4. There. It will take 4 years for the account to reach $600.
User Akshaya Pandey
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