Question

You want to put $8,000 in a simple interest account. It has a 2% annual interest rate. How long must you invest that money to earn $400 in interest?

Answer 1

Dear Sadaadams73, to solve this problem, we use the formula I=Prt. The equation will look like 400=8000 x 0.02 x t. Multiply 8000 by 0.2 to get 1600t=400. Then divide both sides by 400 to get 4 years.