Suppose you deposit $2,000 in savings account that pays interest at an annual rate of 4%. If no money is added or withdrawn, determine how many years it will take for the account to contain $2,500.

A) 3 years

B) 4 years

C) 5 years

D) 6 years

Question

24 October, 10:28

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Answers (1)

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Buddy · Answer 1

Using I = PRT

$2500 - $2000 = $2000 * 0.04 * t

$500 = 80t

t = $500 : 80

t = 6.25 years

so the answer is 6

Suppose you deposit $2,000 in savings account that pays interest at an annual rate of 4%. If no money is added or withdrawn, determine how many years it will take for the account to contain $2,500.A) 3 yearsB) 4 yearsC) 5 yearsD) 6 years