You want to put $4,000 in a simple interest account. It has a 2.5% annual interest rate. How long will it take you to earn $500 in interest?



2 years ago Comment

Dear Abby1012, the question to your answer requires the use of the formula I=Prt. The equation will look like 500=4000(0.025)t. Multiply 4000 times 0.025 to get 500=10t. t=50 years.