Question

Megan is saving to buy a car that cost $14,00.00 she currently has $12,500.00 in her savings account that earns simple interest at a rate of 6% if she does not add any other money to this account how long will it take before Megan has enough money to buy the car

Answer 1

Answer:

2 years

Step-by-step explanation:

First make an equation to solve the problem. $12,500 is her starting balance, she needs $14,000. She has a interest rate of 6% which means her balance will increase.

If the time is in years add 1 to 0.06 because 1 represents the $12,500.

Equation: 12,500 x 1.06^x     x = # of years

You can use guess an check which I used. plug in numbers for x such as 1,2,3

and see which one is closest to $14,000.