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You deposited $5,000 in your account earning 2.5 simple interest how long would it take for the balance of the account to earn $1,500 in interest?

You deposited $5,000 in your account earning 2.5 simple interest how long would it-example-1
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User Horsing
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To solve this problem, we can use the formula for simple interest:

I = P * r * t

where I is the interest earned, P is the principal amount (the initial deposit), r is the interest rate as a decimal, and t is the time in years.

We want to find how long it will take for the account balance to earn $1,500 in interest, so we can set up the equation:

$1,500 = $5,000 * 0.025 * t

where t is the time in years.

Simplifying this equation, we get:

t = $1,500 / ($5,000 * 0.025)

t = 12 years

Therefore, it will take 12 years for the balance of the account to earn $1,500 in interest

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User Ceaser
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