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24 October, 10:28

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 If no money is added or withdrawn, determine how many years it will take for the account to contain $2,500.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

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Answers (1)
  1. 24 October, 10:44
    0
    Using I = PRT

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

    $500 = 80t

    t = $500 : 80

    t = 6.25 years

    so the answer is 6
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