Question

Breanne plans to invest her money into a simple interest savings account. Currently she has $13,663 to invest and the current market rate is 2.7% for annual interest yield. How long (in years) will Breanne need to leave the money in the account for it to earn $6,491 in interest? Round answer to the nearest hundredth (2 decimal places) of a year,

Answer 1

It will take 17.6 years to earn $6,491 interest.

Explanation:

Giving the following information:

Principal= 13,663

Interest= 6,491

Interest rate= 2.7% = 0.027

To calculate the time required to reach the objective, we need to use the following formula:

I= P*r*t

I= interest

P= principal

r= rate

t= time

We isolate t:

t= I / (P*r)

t= 6,491 / (13,663*0.027)

t= 17.60

It will take 17.6 years to earn $6,491 interest.