Answer: 6 years
Step-by-step explanation:
To find out how many years it will take for the account to grow to $9,320 with a simple interest rate of 2 3/4%, we can use the formula for simple interest:
�
=
�
×
�
×
�
I=P×r×t
Where:
�
I is the interest earned
�
P is the principal amount (initial investment)
�
r is the interest rate (expressed as a decimal)
�
t is the time in years
In this case, we want to find
�
t, so we rearrange the formula to solve for
�
t:
�
=
�
�
×
�
t=
P×r
I
Given:
�
=
$
8
,
000
P=$8,000
�
=
$
9
,
320
−
$
8
,
000
=
$
1
,
320
I=$9,320−$8,000=$1,320
�
=
2.75
%
=
0.0275
r=2.75%=0.0275 (converted to a decimal)
Now, plug in the values:
�
=
1320
8000
×
0.0275
t=
8000×0.0275
1320
�
=
1320
220
t=
220
1320
�
=
6
t=6
