Question

mike saves 2,000 at a yearly simple interest rate of 2% he earns $280 in interest. for how many years did he save this money?

Answer 1

Using the formula for simple interest, we can determine that Mike saved his money for 7 years to earn $280 in interest from a principal of $2,000 at a 2% yearly interest rate.

Step-by-step explanation:

To find out how many years Mike saved his money, we will use the formula for calculating simple interest:

I = P × r × t
where I is the interest earned, P is the principal amount (initial amount of money), r is the interest rate (as a decimal), and t is the time in years.

Given that Mike earned $280 in interest with an initial deposit of $2,000 at a 2% yearly interest rate, we can solve for t (time in years) as follows:

280 = 2,000 × 0.02 × t
—————
t = 280 / (2,000 × 0.02)
t = 280 / 40
t = 7
So, Mike saved his money for 7 years.

Answer 2

It took Mike 7 years to save that money.

Step-by-step explanation:

Our goal is to find what 2% of 2,000 is.

The first step is to multiply 2,000 by .02, this gives us 40.

2,000/.02= 40

Next, we divide 280 by 40 to find out how many years it took Mike to save this money, this gives us the quotient of 7.

280/40= 7