Question

Andrea opened a bank account for her daughter Hannah, with a deposit of $ 1,750 . The account will earn 2% simple interest annually. How many months will it take her to earn interest in the amount of $245 on her deposit?

Answer 1

84 months

Explanation:

I × 100 = P × R × T

I = interest = $245

P = principal = $1750

R = rate = 2%

T = time(in years) = ??

245 × 100 = 1750 × 2 × T

24500 = 3500T

24500/3500 = T

7 = T

To convert the time to month:

7 × 12 = 84 months