Question

Elise is investing 10,000 in an account that earns 2.25% simple interest. How many years will it take to have a balance of 12,700 in her account, if she does not add or withdraw from the account?

Answer 1

12 years

Explanation:

The formula to solve the above question i.e to find the time is given as:

Equation:

t = (1/r)(A/P - 1)

Calculation:

First, converting R percent to r a decimal

r = R/100 = 2.25%/100 = 0.0225 per year,

then, solving our equation

t = (1/0.0225)((12700/10000) - 1) = 12

t = 12 years

Therefore, if she does not add or withdraw from the account, the time it

will take to have a balance of 12,700 in her account is 12 years