0.03 * 7,000 = $ 210 per year
$420 / ($210 / year) = 2 years
$420 / ($210 / year) = 2 years
To find out the time, we'll use the formula:
Interest = Principal * Rate * Time
In this case, the principal is $7,000, the rate is 3% (or 0.03 in decimal form), and the interest earned is $420. So, we can rearrange the formula to solve for Time:
Time = Interest / (Principal * Rate)
Time = $420 / ($7,000 * 0.03)
Time ≈ 420 / 210
Time ≈ 2 years
Ah, so Sam kept his account open for approximately 2 years! I hope he didn't spend all that interest on clown shoes!
Interest = Principal * Rate * Time.
Let's plug in the values we have:
Interest = $420
Principal = $7,000
Rate = 3% or 0.03
Therefore, the formula becomes:
$420 = $7,000 * 0.03 * Time
Now, let's solve for Time:
Time = $420 / ($7,000 * 0.03)
Time = $420 / $210
Time = 2
Therefore, Sam kept his account open for 2 years.
Interest = Principal * Rate * Time
In this case, the principal (initial amount) is $7,000, the rate is 3%, and the interest earned is $420. We need to find the time.
Let's plug in the given values into the formula and solve for time:
$420 = $7,000 * 0.03 * Time
Dividing both sides of the equation by ($7,000 * 0.03) gives us:
Time = $420 / ($7,000 * 0.03)
Calculating the right side of the equation:
Time = $420 / $210
Time = 2 years
So, Sam kept his account open for 2 years.