You deposit $200 in an account earning 3.5% simple interest how long will it take for the balance of the account to be $221
Mathematics · Middle School · Tue Nov 03 2020
Answered on
Given:
Principal Amount (P): $200
Rate ( r ) : 3.5% or 0.035
Future Value ( A ) = $221
Determine how long will it take to accumulate the future value.
Formula for Future Value:
A = I + P
Formula for Simple Interest:
I = Prt
Solution:
Solve first the interest by using the formula for future value, so that we can determine the time it would take to accumulate that interest later by using the formula for simple interest.
A = I + P
I = A - P
I = 221 -220
I = 21
Now we can solve for the time in years.
21 = 200(0.035)t
21 = 7t
t = 3
Final answer:
It would take 3 years to accumulate a balance of $221