Question

Jennifer invested $484 in a simple interest account earning 2.1%/year. The account now has $655 in it. How long (in months) was the money invested?

A) 12 months
B) 18 months
C) 24 months
D) 30 months

Answer 1

The money was invested for approximately 30 months.

Step-by-step explanation:

To find the length of time the money was invested, we can use the formula for simple interest:

Simple Interest = Principal Amount × Interest Rate × Time

Given that the principal amount is $484, the interest rate is 2.1%/year, and the account now has $655, we can set up the equation as:

$655 = $484 × 0.021 × Time

Solving for Time, we divide both sides of the equation by ($484 × 0.021) to get:

Time = $655 / ($484 × 0.021)

Time ≈ 30.63 months

Therefore, the money was invested for approximately 30 months.