Question
you deposit $800 in an account that earns simple interest at an annual rate of 5%. how long must you leave the money in the account to earn $100 in interest?
Answers
Fred
I = PRN
$100 = 800 x 0.05 x N (I= $100, P= $800, R=5%=0.05)
$100 = 40 x N
Therefore N = 2.5
It will take 2.5 years
$100 = 800 x 0.05 x N (I= $100, P= $800, R=5%=0.05)
$100 = 40 x N
Therefore N = 2.5
It will take 2.5 years