Question

2500 dollars is placed in an account with an annual interest rate of 7.25%. To the nearest year, how long will it take for the account value to reach 13100 dollars?

please help!^^

Answer 1

5 years

Explanation:

Find out how much you earn a year from interest and money.

Find 1%.

100% = 2500

1% = 2500 ÷ 100 = 25

7.25% = 25 x 7.25 = 181.25

2500 + 181.25 = 2681.25

Now divide how much you earn from money and interest from 13100.

13100 ÷ 2681.25 = 4.88

4.88 estimated to 5

Answer 2

about 58 years 6 months

Explanation:

First, converting R percent to r a decimal

r = R/100 = 7.25%/100 = 0.0725 per year,

then, solving our equation

t = 10600 / ( 2500 × 0.0725 ) = 58.4828

t = 58.4828 years

The time required to

accumulate simple interest of $ 10,600.00

from a principal of $ 2,500.00

at an interest rate of 7.25% per year

is 58.4828 years (about 58 years 6 months).