Question

- You invest $80 into a simple interest savings account that earns 5% annually.

After how many years will the account have a total of 200$ in it?

Answer 1

30 years.

Explanation:

The equation for simple interest is I = PRT, where I = interest earned, P = principal/amount invested, R = rate as a decimal, and T = time in years.

Our unknown for this example is T, but first we have to see how much interest is earned.

200 - 80 = 120 in interest (starting with $80, ending with $200)

120 = (80)(0.05)(T)

120 = 4T

30 = T

Please lmk if you have questions.