Tom deposits $1000.00 in a savings account that earns 5% simple interest. How long will it take for the total of his account to reach $1350.00
To find out how long it will take for the total amount in Tom's savings account to reach $1350.00, we need to use the formula for simple interest:
Simple Interest = Principal x Rate x Time
In this case, the principal amount is $1000.00 and the interest rate is 5%. We need to find the time it takes to reach $1350.00. We can rearrange the formula to solve for time:
Time = (Simple Interest / (Principal x Rate))
Let's plug in the given values:
Time = ($1350.00 - $1000.00) / ($1000.00 x 0.05)
Time = $350.00 / $50.00
Time = 7
Therefore, it will take 7 time periods (which could be years, months, days, etc., depending on the context or information given) for the total of Tom's savings account to reach $1350.00.
A = P +Prt
1350 = 1000 + 1000(.05)(t)
Solve for t.