Question

Suppose Huston deposit $600 into a savings account with a simple interest rate of 2.5%. How many years would he have to keep his money in the bank in order to earn at least $120 in interest?

Answer 1

• At least 8 years

Explanation:

Deposit = $600

Interest rate = 2.5% simple

Time = x years

Target interest amount ≥ $120

• 600*0.025*x ≥ 120
• 15x ≥ 120
• x ≥ 120/15
• x ≥ 8 years

At least 8 years