Question

How long does it take an account with a principal of $500 to earn $75 in interest at a simple annual interest rate of 3%?

Answer 1

about 5 years

Explanation:

year 1)500*0.03= 15

year 2)515*0.03= 15.45+515=530.45

year 3)530.45*0.03= 15.91+530.45=546.36

year 4)546.36*0.03=16.39+546.36=562.75

year 5)562.75*0.03=16.88+562.75=579.63