Question

You deposit $800 in an account that earns simple interest at an annual rate of 59. How long must you leave the money in the account to earn $100 in interest?

Answer 1

2.5 years

Explanation:

convert percent to a decimal --> 5% = .05

y = number of years

$100 = 0.05y ($800)

100/800 = 0.05y

0.125 = 0.05y

2.5 = y