Question

Randee invested $1000 for college in an account earning 5% simple interest. When she withdrew the investment she had earned a total of $550 in interest. How log was the money invested?

Answer 1

Simple Interest Formula: A = P(1 + rt)

1555 = 1000(1+(0.05*t))

1.55 = 1 + (0.05*t)

0.55 = 0.05t

11 = t

The answer is 11. Whether that is 11 years or months or whatever depends on your exact question.