Question

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?

Answer 1

5 years to earn 500 in interest

Answer 2

Find out the how long will it take you to earn $500 in interest .

To prove

Formula

`Simple\ interest = (Principle* Rate*\ Time)/(100)`

As given

You want to put $4,000 in a simple interest account.

It has a 2.5% annual interest rate.

interest rate = $500

Put in the formula

`500 = (4000* 2.5*\ Time)/(100)`

`Time= (500* 100)/(4000* 2.5)`

`Time= (50000)/(10000)`

Time = 5 years

Therefore the 5years will it take you to earn $500 in interest .