Question

You deposit $200 in an account earning 3.5% simple interest. How long will it take for the balance of the account to be $249? Write down the formulas you are going to use.

Answer 1

7 years

Explanation:

I = P×r×t

I = 249 - 200 = 49

49 = 200 × (3.5/100) × t

t = 49/7

t = 7

Answer 2

7 years

Explanation:

Simple interest is given by

I = PRT where I is the interest, P is the principle r is the rate and t is time

If we have 249 in the account and started with 200,

the interest is 249-200 = 49

The principle is 200 and the rate is 3.5% or in decimal form .035

Putting into the equation

49 = 200 (.035) t

49 =7t

Divide each side by 7

49/7 = 7t/7

7 =t

It will take 7 years