Question

Tiana deposited $500 into an account that earns 6% simple interest. How many years will it take for the value of the account to reach $2000

Answer 1

Number of year = 50 year

Explanation:

Given:

Amount deposit in account = $500

Rate of interest = 6 % = 0.06 (Simple interest)

Future amount = $2,000

Find:

Number of year

Computation:

A = P + I

2,000 = 500 + I

Amount of interest I = $1,500

I = PRT

1,500 = 500 x 0.06 x Number of year

1,500 = 30 x Number of year

Number of year = 1,500/30

Number of year = 50 year