Question

Karen has $7,300 in her bank account. The account pays 1.5% simple interest. How long will it take for her

to have $8,500 in her account?
Round up to the next year.
years

Answer 1

To calculate how long it will take for Karen to have $8,500 in her account with a 1.5% simple interest rate, you can use the formula:

Interest = Principal (P) x Rate (R) x Time (T)

In this case, the principal (P) is $7,300, the rate (R) is 1.5% (or 0.015 as a decimal), and we want to find the time (T) in years.

Interest = $8,500 - $7,300 = $1,200

Now, plug in these values into the formula:

$1,200 = $7,300 x 0.015 x T

Now, solve for T:

T = $1,200 / ($7,300 x 0.015)

T ≈ 10.96 years

Since you want to round up to the next year, it will take Karen approximately 11 years to have $8,500 in her account.