Question

Sherri currently has an account balance of $1,050.80. Her initial deposit on the account was $740 and it earned 3.5% simple interest. How long has Sherri held the account?

Answer 1

Sherri has the account since twelve years ago

Explanation:

1. Let's review the information given to us to answer the question correctly:

Current balances of Sherri's account = $ 1,050.80

Initial deposit = $ 740

Interest rate = 3.5% simple interest = 0.035

2. How long has Sherri held the account?

Let's recall the formula of the simple interest:

FV = P * (1 + rt), where FV is the future value of the investment or initial deposit, P, the initial deposit, r, the interest rate and t, the number of periods.

Replacing with the values we have:

1.050.80 = 740 * (1 + 0.035t)

1,050.80 = 740 + 25.9t

1,050.80 - 740 = 25.9t

310.80 = 25.9t

t = 310.80/25.9

t = 12

Sherri has the account since twelve years ago