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rex deposit $900 into an account that earn 4% simple interest how many years will it take for value of the account to reach $1800

rex deposit $900 into an account that earn 4% simple interest how many years will-example-1
User Selena
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1 Answer

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We can use the formula for simple interest to solve this problem:

Simple Interest = Principal * Rate * Time

Where:
Principal = $900
Rate = 4% = 0.04
Simple Interest = $1800 - $900 = $900

Substituting these values into the formula and solving for time:

$900 = $900 * 0.04 * Time

Time = $900 / ($900 * 0.04) = 25 years

Therefore, it will take 25 years for the value of the account to reach $1800 with a 4% simple interest rate.
User David M Lee
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