You deposit $5000 in an account that earns 5% simple interest. How long will it take to earn $800 in interest?

Question

You deposit $5000 in an account that earns 5% simple interest. How long will it take to earn $800 in interest?

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Isabella 3 weeks 2022-01-07T15:29:26+00:00 1 Answer 0 views 0

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    2022-01-07T15:30:52+00:00

    Answer:

    3.2 years

    Step-by-step explanation:

    You are going to want to use the simple interest formula for this:

    t=\frac{I}{Pr}

    I = interest amount

    P = principal amount

    r = interest rate (decimal)

    First, change 5% into a decimal:

    5% -> \frac{5}{100} -> 0.05

    Now, lets plug the values into the equation:

    t=\frac{800}{(5,000)(0.05)}

    t=3.2

    It will take 3.2 years to earn $800 in interest.

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