Asked by Olivia

You deposit $3,000 in a savings account that earns 6% simple interest. How long will it be before you have a total of $3,500?

Answers

Answered by Anonymous
.06 (3000)t = 500
Answered by Olivia
Sorry the choices were:
1. 280 years

2. 0.28 years

3. 28 years

4. 2.8 years
Answered by bobpursley
3500=3000(1.06)^t

3.5/3.0=1.06^t
take the log of each side

log(3.5)-log(3.0)=t(log1.06)
solve for t.

answer 4 looks promising. check it.
Answered by Reiny
Olivia, why did you not evaluate the equation given to you in the first reply ?
it gives a time of 2.777... or 2.8 years

Bob gave you the calculation using compound interest, the most likely scenario in our 21st Century, and the time for this real-life case would be 2.65 years

I do not know of any bank which pays simple interest for any extended length of time in savings accounts.
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