Question

I need help with how to solve this question. The answer is 6.25 I just don't know how. You deposit $2000 in an account that earns simple interest at an annual rate of 4%. How long must you leave the money in the account to earn $500 in interest?

Answer 1

it is 6.25 because 4% equals 0.04. So 6.25 times 0.04 is $80 (this means that you get interest of $80 every $2000). Then $500 divided by $80 equals 6.25