Question

Evelyn deposited $23,750 in a savings account that earns 5.3%

simple interest. Evelyn has not made any deposits or
withdrawals since she opened account. Approximately how
many years have passed since Evelyn opened the account if her
latest balance is $28,785? (TEK 8.12D)

Answer 1

Using the simple interest formula, we calculated that approximately 4 years have passed since Evelyn deposited $23,750 in a savings account that now has a balance of $28,785 with an annual interest rate of 5.3%.

Step-by-step explanation:

Evelyn deposited $23,750 in a savings account that earns 5.3% simple interest. After some time, her balance grew to $28,785. To find out how many years have passed since Evelyn opened the account, we need to use the formula for calculating simple interest, which is Interest = Principal × Rate × Time.

First, let's calculate the total interest earned by subtracting the original principal from the current balance:

Interest = Current Balance - Principal

Interest = $28,785 - $23,750

Interest = $5,035

Now, we can rearrange the simple interest formula to solve for time (T):

T = Interest / (Principal × Rate)

Let's plug in the numbers and solve for T:

T = $5,035 / ($23,750 × 0.053)

T = $5,035 / $1,258.75

T ≈ 4 years

Approximately 4 years have passed since Evelyn opened her savings account.