Question

You deposit $2000 in an account that earns simple interest at an annual rate of 4%. How long must you leave the money in the account to earn $500 in interest?

Answer 1

6.25YEARS

Explanation:

S.I.=P×R×T÷100

T=S.I.×100÷P×R

T=500×100÷2000×4

T=500÷20×4

T=500÷80

T=6.25 YEARS