Alicia Eastman deposited $2,000 in a savings account at the Biltmore Bank paying 6% ordinary interest. How many years will it take for her investment to amount to $2,600?
P = Po + Po*r*t = 2600
2000 + 2000*(0.06/360)t = 2600
2000 + t/3 = 2600
t/3 = 2600-2000 = 600
t = 1800 Days.
t = 1800Days / 360Days/yr. = 5 Yrs.
Ordinary int. is based on 360 days/yr.