Question

Jessica deposits her summer babysitting earnings, $600, in a savings account. How many years will it take her to earn $150 in interest at a simple annual rate of 5%? Enter the correct number in the formula

Answer 1

5 years

Explanation:

Use the formula I = Prt

I = 150, P = 600, r = 5% ( change to a percent by moving the decimal two places left, 5% = .05). Plugin the numbers to the fomrula and solve for t.

150 = 600(.05)t

150 = 30t

150/30 = 30t/30

t = 5 years