You want to put $4,000 in a simple interest account. It has a 2.5% annual interest rate. How long will it take you to earn $500 in interest?
I = PRT
500 = 4,000 * 0.025 * T
500 = 100T
500/100 = T
5 = T
To find out how long it will take you to earn $500 in interest on a $4,000 simple interest account with a 2.5% annual interest rate, you need to use the formula for simple interest:
Interest = Principal x Rate x Time
In this case, the principal is $4,000, the rate is 2.5% (which is equivalent to 0.025 as a decimal), and we need to find the time it takes to earn $500 in interest.
Let's substitute these values into the formula:
$500 = $4,000 x 0.025 x Time
Next, solve for Time:
Time = $500 / ($4,000 x 0.025)
Time = $500 / $100
Time = 5
Therefore, it will take you 5 years to earn $500 in interest on a $4,000 simple interest account with a 2.5% annual interest rate.