Sam opened a money-market account that pays 2% simple interest. He started the account with $7,000 and made no further deposits. When he closed the account, he had earned $280 in interest. How long did he keep his account open?

A. 2 years

B. 5 years

C. 3 years

D. 4 years

Question

Donovan Banks

Mathematics

1 March, 19:19

Sam opened a money-market account that pays 2% simple interest. He started the account with $7,000 and made no further deposits. When he closed the account, he had earned $280 in interest. How long did he keep his account open?

A. 2 years

B. 5 years

C. 3 years

D. 4 years

+4

Answers (1)

Know the Answer?

Alden Lang · Answer 1

The formula for simple interest =

I = PRT

P = initial capital = $7000

R = rate = 0.02 in this case

T = time = our variable we are solving for

Thus substitute the parts into the equation we get

280 = 7000*0.02*T

Solving for T we get A or 2 years

Sam opened a money-market account that pays 2% simple interest. He started the account with $7,000 and made no further deposits. When he closed the account, he had earned $280 in interest. How long did he keep his account open?A. 2 yearsB. 5 yearsC. 3 yearsD. 4 years

Sam opened a money-market account that pays 2% simple interest. He started the account with $7,000 and made no further deposits. When he closed the account, he had earned $280 in interest. How long did he keep his account open?

A. 2 years

B. 5 years

C. 3 years

D. 4 years