Question

Mr. Smith opened a retirement account with a deposit of $900. This account earns 5% simple interest annually. How many years will it take for his $900 deposit to earn $360 interest?

Answer 1

Principal (P) = $900
Rate of interest (R) = 5%
S.I = $360
Time =?

Formula to find the time=
T= 100 x S.I / P x R


T= 100 x 360 / 900 x 5
T= 36000/4500
T= 8 years

Answer 2

your answer should be 6 years!