Question

Mr. Florean opened an account with deposit of $5,000. The account earned 7.5% annual simple interest. He did not make any additional deposits or withdrawals. After some time, the balance of the account was $6,500. How many years did it take for mr.Flores to have a balance of $6,500?

Answer 1

4 years

Explanation:

The simple interest = $6,500 - $5,000 = $1500

From the formula for simple interest;

I=PRT/100

T= 100 I/PR

T= 100 × 1500/5000 × 7.5

T= 150000/37500

T= 4 years