Let x be the number of years Mike saves his money.
The formula for calculating simple interest is:
Interest = Principal x Rate x Time
Given:
Principal = $2,000
Rate = 2% = 0.02
Interest = $280
Substitute the given values into the formula:
$280 = $2,000 x 0.02 x x
Solve for x:
$280 = $40x
x = $280 / $40
x = 7
Mike saved his money for 7 years.
Mike saves $2,000 at a yearly simple interest rate of 2%. He earns $280 in interest.
For how many years did he save this money?
1 answer