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20 January, 23:43

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?

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Answers (2)
  1. 21 January, 00:40
    0
    Simple interest = starting amount x time (in years) x rate

    8000 (0.02) (t) = 400

    160t = 400

    t = 400/160 = 2.5 Years

    2.5 years will be 2 years and 6 months
  2. 21 January, 03:33
    0
    I = prt is the formula for simple interest

    400 = 8000 *.02 * t

    400 = 160 * t

    2.5 = t

    2.5 years to earn $400 interest
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