Question

Bonita deposited $1300 into a bank account that earned 5.75% simple interest each year. She earned $299 in interest before closing the account.

If no money was deposited into or withdrawn from the account, for how many years was the money in the account?
Round your answer to the nearest whole year.

Answer 1

The answer is 4 years

explanation:
i took the test

Answer 2

we know that

The simple interest formula is equal to

`I=P(rt)`

where

I is the amount in interest

P is the Principal amount of money to be invested

r is the rate of interest

t is Number of Time Periods

in this problem we have

`t=?\ years\\ P=\$1,300\\ I=\$299\\r=0.0575`

substitute in the formula above and solve for t

`299=1,300(0.0575)(t)`

`t=299/[1,300(0.0575)]`

`t=4\ years`

therefore

the answer is

`4\ years`