197k views
5 votes
Jerome deposited $8,000 into a new retirement account with a simple interest rate of 2.8%. If account has earned $3,808 in interest, and there have been no deposits or withdraws, how many years ago did he open the account?

1 Answer

0 votes

Jerome opened the account 17 years ago

Solution:

Jerome deposited $8,000 into a new retirement account with a simple interest rate of 2.8%

Therefore,

Principal = $ 8000

Rate of interest = 2.8 %

The account has earned $3,808 in interest

Simple interest earned = $ 3808

The formula for simple interest is given as:


\text{ Simple interest} = (p * n * r)/(100)

Where,

"p" is the principal and "n" is the number of years and "r" is the rate of interest

Substituting the known values,


3808 = (8000 * n * 2.8)/(100)\\\\3808 = 80 * n * 2.8\\\\3808 = 224 * n\\\\n = (3808)/(224)\\\\n = 17

Thus he opened the account 17 years ago

User Torinpitchers
by
8.0k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories