Asked by Anonymous

Alicia Eastman deposited $2,000 in a savings account at the Biltmore Bank paying 6% ordinary interest. How many years will it take for her investment to amount to $2,600?

Using the scenario from the previous question, determine the maturity date of the loan.

Answers

Answered by Henry
I = 2600-2000 = $600

I = Po*(0.06/360)*t = 600
2000*(0.06/360)*t = 600
0.333t = 600
t = 1800 Days = 5 yrs(Assuming 360 days/yr)
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