Question

If Lana deposits $500 into a savings account that gains simple interest at

a rate of 2% annually, how many years will it take for the account to gain
$100 in interest?

Answer 1

10 years

Explanation:

First, converting R percent to r a decimal

r = R/100 = 2%/100 = 0.02 per year,

then, solving our equation

t = 100 / ( 500 × 0.02 ) = 10

t = 10 years

The time required to

accumulate simple interest of $ 100.00

from a principal of $ 500.00

at an interest rate of 2% per year

is 10 years.