Question

Gwen has $50 in a savings account that earns 5% annually. The interest is not compounded. How many years will it take for her to have $57.50 in her

account?

Answer 1

3 years

Explanation:

1. Find 5 percent of 50.

5 percent of 50 is 2.5.

However, we are talking about money so we will say 2.50.

2. Add to 50 until you reach your desired number.

50 + 2.50 = 52.50

52.50 +2.50 = 55

55+2.50 = 57.50

Finally we have reached 57.50. It took us 3 equations to get there and therefore took 3 years.