asked 149k views
3 votes
rex deposit $900 into an account that earn 4% simple interest how many years will it take for value of the account to reach $1800

rex deposit $900 into an account that earn 4% simple interest how many years will-example-1
asked
User Selena
by
8.0k points

1 Answer

3 votes
We can use the formula for simple interest to solve this problem:

Simple Interest = Principal * Rate * Time

Where:
Principal = $900
Rate = 4% = 0.04
Simple Interest = $1800 - $900 = $900

Substituting these values into the formula and solving for time:

$900 = $900 * 0.04 * Time

Time = $900 / ($900 * 0.04) = 25 years

Therefore, it will take 25 years for the value of the account to reach $1800 with a 4% simple interest rate.
answered
User David M Lee
by
8.2k points
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