Question

You want to put $8,000 in a simple interest account. It has a 2% annual interest rate. How long must you invest that money to earn $400 in interest? CLEAR CHECK 2.5 years 5 years 10 years 0 years

Answer 1

2.5 years

Explanation:

Interest= P×R×T÷100

T= 100I÷P×R

T= 100×400÷8000×2

T= 40000÷16000

T= 5÷2

T= 2.5 years