Question

mr. Felix deposited $2,500 into an account that earns 8.5% simple interest mr. Felix has not made any deposit or withdrawal of approximately how many years have passed since mr. Felix open the account is his latest balance is $4,625 hint determine the interest earned so far in order to plug into the simple interest formula

Answer 1

The formula for determining simple interest is expressed as

I = PRT/100

Where

I = interest earned

P = principal or amount deposited

R = interest rate

T = time or duration in years

From the information given,

P = 2500

R = 8.5

If the total amount after t years is 4625, then the interest earned is

4625 - 2500 = 2125

This means that I = 2125

Thus, we have

2125 = (2500 * 8.5 * T)/100

2125 = 212.5T

T = 2125/212.5

T = 10

The number of years is 10