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You invest \$275.00 in a money-market account that pays simple interest at a rate of 10%. How long must you leave your investment in the money-market account if you expect to earn \$27.50 in interest?

A year? How do I work it?

• Algebra Grade 7 - ,

275 * 0.1 = \$27.50

One year

• Algebra Grade 7 - ,

A new house costs \$160,000.00. Sara wants to buy the house and needs \$1,534.00 for a down payment. If Sara currently has \$1,300.00 in a savings account paying simple interest at a rate of 3%, how long must she keep the money in the savings account in order to have enough for the down payment on the house?

• Algebra Grade 7 - ,

1,534 - 1,300 = \$234 she needs

1,300 * 0.03 = 39

234 / 39 = 6 years

• Algebra Grade 7 - ,

Thank you Ms. Sue, I really appreciate your help.... :-)

• Algebra Grade 7 - ,

You're very welcome, Rawr!

• Algebra Grade 7 - ,

A new house costs \$160,000.00. Sara wants to buy the house and needs \$1,534.00 for a down payment. If Sara currently has \$1,300.00 in a savings account paying simple interest at a rate of 3%, how long must she keep the money in the savings account in order to have enough for the down payment on the house?