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You deposit 4000 into a savings account. The account earns 2.75% simple interest. How long will it take to earn $220 in interest?

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From the information given, the deposit is 4000$, interest rate is 2.75% the final interest amounts to 220$ but the time it will take to earn this interest is unknown. We will assume the interest earned is per annum.

The formula we use is I = Prt

Let simple interest be I which is 220

Let principal sum be P which is 4000

Let interest rate be r which is 2.75 %

Let time be t

We need t, so we say t = I / Pr

t = 220 / 4000 * 2.75/100

t = 220 / 4000 * .0275

t = 220 / 110

t = 2

Therefore the time it will take to earn 220 $ interest is 2 years.


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