If i put $1500 into my savings account and earned $180 of interest at 4% simple interest, how long was my money in the bank

Question

Paxton Small

Mathematics

24 December, 12:51

If i put $1500 into my savings account and earned $180 of interest at 4% simple interest, how long was my money in the bank

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Answers (1)

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Corbin Haas · Answer 1

The "interest" is always the annual rate, that is, 4% for a year.

The percent of interest you earned is (180/1500) = 0.12 = 12%.

Since you got 4% per year, your money was in the bank for

(12 %) x (1 year / 4%)

= (12 x 1 / 4) (% / %) (year) = 3 years.