Question

Sam opens a money-market account that pays 4% simple interest. He started with 7,000 and made no further deposits. He closed the account and he had earned 1,400. How long did he have the account

Answer 1

I = PRT

1,400 = 7,000 (.04) (T)

1,400 = 280T

1,400/280 = 280T/280
T = 5

Answer: He had the account 5 years