Question

Karmal puts $500 in a savings account that earns simple interest the interest rate is 5% how long will it take karmal to earn $500 in interest from this account if he makes no other deposits or withdrawal

Answer 1

It takes 20 years to earn $500 in interest from this account if he makes no other deposits or withdrawal

Solution:

From given,

Principal = $ 500

Rate of interest = 5 %

Simple Interest = $ 500

Number of years = ?

Use the formula

$Simple\ Interest = \frac{p \times n \times r}{100}\\\\500 = \frac{500 \times n \times 5}{100}\\\\5n = 100\\\\n = 20$

Thus it takes 20 years to earn $500 in interest from this account if he makes no other deposits or withdrawal