Question

How long does it need to keep $600 in an account that pays 2.75% annual simple interest to earn $264?

Answer 1

16 years

Explanation:

Principal amount (P) = $600

Rate of interest (R) = 2.75%

Simple interest (S.I.) = $264

Let t denotes time period.

`S.I.=(PRT)/(100)`

`264=(600(2.75)t)/(100) \\\\t=(264(100))/(600(2.75))`

`t=16` years.

Therefore,

interest of $264 will be earned in 16 years.