Question

Your laptop died and you need a new one for work Now! The one you need will cost $500. You do not have the cash in your checking account, so you decide to borrow the money from your savings account. You have $9000 in your savings account gaining 3% interest per year. If you don’t replace the $500 in the savings account, how long will it take before the balance again reaches $9000

Answer 1

2 years

Explanation:

If you have $9000 in the saving account, and you take $500, you are left with:

$9000 - $500 = $8500

in one year you will have 3% more of the 8500 which is:

8500/100*3 = $255

so in one year the number on your savings account is:

8500 + 255 = $8755

and by the next year you will have 3% more of the 8755 which is:

8755/100*3 = $262.65

so in two years the number on your savings account is:

8755 + 262.65 = $9017.65

which is a little bit more than the $9000.

so it will take 2 years until the calance again reaches $9000