Question

You want to put $2500 in a simple interest account. it has 4% Annual interest rate how long will it take you to earn $200 in interest?

Answer 1

2 years

4% of 2500 is 100

So 100x2 years would be 200

Answer 2

Explanation:

SI = PRT/100

$200 = 2500 * 4*T/100

200 *100 / 2500 *4 = T

T = 200 * 100 /2500*4 = 2

T = 2 years