lori wants to deposit $2,500 in a simple - interest account. it has a 4% annual interest rate. how long will…
lori wants to deposit $2,500 in a simple - interest account. it has a 4% annual interest rate. how long will it take for lori to earn $200 in interest?
Answer
Answer:
2
Explanation:
Step1: Recall simple - interest formula
$I = Prt$, where $I$ is interest, $P$ is principal, $r$ is rate, and $t$ is time.
Step2: Identify given values
$I = 200$, $P=2500$, $r = 0.04$ (since $4%=0.04$).
Step3: Substitute values into formula
$200=2500\times0.04\times t$.
Step4: Simplify right - hand side
$2500\times0.04 = 100$, so $200 = 100t$.
Step5: Solve for $t$
$t=\frac{200}{100}=2$.