Question

Samantha opened a savings account with 2000. The account earns 6.25% simple interest annually.after how many years will the balance of the account be 6500? The balance of the account Will be 6500 after that__ years

Answer 1

To find out after how many years the savings account balance will reach $6500 with a principal of $2000 and a simple interest rate of 6.25%, the simple interest formula is used and it is found that it will take 36 years for the account to reach the target balance.

Step-by-step explanation:

To determine after how many years the balance of Samantha's savings account will be $6500 with an initial deposit of $2000 at an annual simple interest rate of 6.25%, we use the formula for simple interest: interest = principal × rate × time.

In this case, the total interest earned when the balance reaches $6500 will be $6500 - $2000 = $4500. We can now set up the equation:

$5000 = $2000 × 0.0625 × time

By dividing both sides of the equation by ($2000 × 0.0625), we can solve for time:

time = $4500 / ($2000 × 0.0625)

time = 36 years

The balance of the account will be $6500 after 36 years.