Question

Howard deposited some money in the bank. How long will Howard have to leave $5000 in the bank to earn $250 in simple interest at 2%.

Answer 1

t = 2.5 years

Explanation:

Given that,

Principal = $5000

Interest = $250

Rate of interest = 2%

We need to find the time. We know that,

`I=(PRT)/(100)`

Put all values to find T.

`T=(100I)/(PR)\\\\T=(100* 250)/(5000* 2)\\\\T=2.5\ yrs`

So, it will take 2.5 years.