Question

Carin opened a money market account with a deposit of $3,000. This account earns 2% simple interest annually. How many years will it take for her $3,000 deposit to earn $430 in interest, assuming she does not withdraw any of the money?

Answer 1

The correct answer is - 7.166 years

Explanation:

Given:

principle amount: 3000

rate of interest: 2%

time?

Interent to get: 430

Formula:

I = P*t*r/100

here p = principle

I = interest

r = rate of intrest and t = time

Solution putting value and deriving Time as formula:

(3000*2*t)/100 = 430

t = 43000/3000*2

= 7.166 years.