Question

Mrs. Williams wants to know how long it will take an investment of $450 to earn $200 in interest if the yearly interest rate is 8%, paid at the end of each year. Choose the closest answer.

Answer 1

It will take about 6 years. First you find 8% of 450 which is $36 then divide 200 by 36, you get 5.5 which you would round up to 6