Question

Debbie deposits $10,463.50 into a saving account that pays a simple interest rate of 20.1% per annum. She wants to leave the money there for 9 years. What is the time in years?

A) 9 years
B) 20.1 years
C) 180.39 years
D) 0.209 years

Answer 1

The provided question asks for the duration of time Debbie's deposit will stay in the bank, which is given as 9 years. Hence, the answer is A) 9 years. Simple interest calculations are relevant, although not required for answering this particular question.

Step-by-step explanation:

The question asks about the duration Debbie's money will stay in a savings account, which is given as 9 years. This is a simple interest problem, but the time in years is not what we're solving for; it's already provided. Therefore, the answer to the question, "What is the time in years?" is A) 9 years.

For reference, if you were solving for how much money needs to be deposited to reach a certain amount with compound interest, like in another example where the goal is to have $10,000 in 10 years with an annual compound interest rate of 10%, you'd use the compound interest formula. However, that's not what this question is about. Simple interest can be calculated using the formula: Principal × Rate × Time, as seen in Example 2 for $100 at a 5% interest rate held for three years.