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20 July, 09:48

Sam opens a money-market account that pays 4% simple interest. He started with 7,000 and made no further deposits. He closed the account and he had earned 1,400. How long did he have the account

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  1. 20 July, 10:17
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    I = PRT

    1,400 = 7,000 (.04) (T)

    1,400 = 280T

    1,400/280 = 280T/280

    T = 5

    Answer: He had the account 5 years
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