Question

Lucas wants to have at least $4,000 in his account. He has $2,500 to deposit into an account that earns simple interest at a rate of 6%. What is the fewest number of years it will take Lucas to reach his goal?

Answer 1

6.25 years

Explanation:

Simple interest = principal x time x interest rate

simple interest = $4,000 - $2,500 = $1,500

1500 = $4,000 x 0.06 x n

1500 = 240n

divide both sides by 240

n = 6.25 years