Question

Ana deposited $14,000.00 into a savings account that earned 8% simple interest. If Ana earned $3,360.00 In Interest, how long did Ana leave the money in the savings account?

Answer 1

The formula to calculate simple interest is:

`I=PRT`

where I is the interes earned, P is the principal, R is the interest rate in decimal form and T is the time we leave the money.

In our case, we know that:

`\begin{gathered} I=3360 \\ P=14000 \\ R=0.08 \end{gathered}`

Plugging this values on the formula and solving for T, we have:

`\begin{gathered} 3360=(14000)(0.08)T \\ T=(3360)/((14000)(0.08)) \\ T=3 \end{gathered}`

Therefore, Ana leave the money in the savings account for 3 years.