Question

You deposited $500 in a simple savings account that earns a simple interest rate of 4.5% each year. How many years do you leave the money in the account to earn and interest of $110.00

Answer 1

Answer:

The number of years to save this money is 5 years.

Step-by-step explanation:

Given;

principal, P = $500

rate, r = 4.5% = 0.045

interest, I = $110.00

time of investment, t = ?

Interest is related to rate, principal and time, by the following equation;

I = Prt

t = I / Pr

t = (110) / (500 x 0.045)

t = 5 years

Therefore, the number of years to save this money is 5 years.