Question

You invest $275.00 in a money-market account that pays simple interest at a rate of 10%. How long must you leave your investment in the money-market account if you expect to earn $27.50 in interest?

A year? How do I work it?

Answer 1

275 * 0.1 = $27.50

One year

Answer 2

What about this one?

A new house costs $160,000.00. Sara wants to buy the house and needs $1,534.00 for a down payment. If Sara currently has $1,300.00 in a savings account paying simple interest at a rate of 3%, how long must she keep the money in the savings account in order to have enough for the down payment on the house?

Answer 3

1,534 - 1,300 = $234 she needs

1,300 * 0.03 = 39

234 / 39 = 6 years

Answer 4

Thank you Ms. Sue, I really appreciate your help.... :-)

Answer 5

You're very welcome, Rawr!

Answer 6

A new house costs $160,000.00. Sara wants to buy the house and needs $1,534.00 for a down payment. If Sara currently has $1,300.00 in a savings account paying simple interest at a rate of 3%, how long must she keep the money in the savings account in order to have enough for the down payment on the house?