Question

Suppose you deposit $600 in a bank account with a simple interest rate of 2.5%. You want to keepyour deposit in the bank long enough to earn at least $120 in interest. How long should you keepyour deposit in the bank?year(s)To earn at least $120 interest, you should keep your deposit in the bank for(Round up to the nearest year.)Enter your answer in the answer box and then click Check Answer

Answer 1

as the interest is simple of 2.5% we have that

$120=600\cdot0.025\cdot t$

where t is the time in years, so we get

$\begin{gathered} 120=15\cdot t\rightarrow \\ t=\frac{120}{15}=8 \end{gathered}$

so you have to wait 8 years to earn $120