Question

Aitlyn has $2500 in a saving account.

She collects 3% annual simple interest.
How many years will it take to collect
$150 in interest?

Answer 1

2 years

Explanation:

Simple Interest Formula

I = Prt

where:

• I = total interest earned
• P = principal
• r = interest rate (in decimal form)
• t = time (in years)

Given:

• P = $2500
• r = 3% = 0.03
• I = $150

Substitute the given values into the formula and solve for t:

⇒ 150 = 2500(0.03)t

⇒ 150 = 75t

⇒ t = 150 ÷ 75

⇒ t = 2

Therefore, it will take 2 years to collect $150 in interest.

Answer 2

• 2 years

Explanation:

The interest amount per year is

• 3% of $2500 =
• 3*2500/100 =
• 75

Number of years is

• 150/75 = 2