Question

Mr. Smith opened a retirement account with a deposit of $900. This account earns 5% simple interest annually. How many years will it take for his $900 deposit to earn $360 interest?

Answer 1

Answer:

8 months=0.6 years

Step-by-step explanation:

I =PRI, where I is the interest=$360

           where P is the principal=$900, and

           where T is the time in year.

I =PRI

$360=$900*5%*T

$360=$900*5/100*T

$360=9*5*T

$360=45T

$360/45=45T/45

T=360/45

T=8 months=0.6 years