Question

At a simple annual interest rate of 4.5%, how many years will it take Sam to earn $135 interest on an original deposit of $1,000?

A. 3

B. 4

C. 5

D. 6

Answer 1

Answer: A

Step-by-step explanation:

Interest = Principal * Rate * Time

135 = 1000 * 4.5% * T

135 = 1000 * 0.045 * T

135 = 45 * T

T = 135/45

T = 3 (A)