You deposit $3,000 in a savings account that earns 6% simple interest. How long will it be before you have a total of $3,500?
.06 (3000)t = 500
Sorry the choices were:
1. 280 years
2. 0.28 years
3. 28 years
4. 2.8 years
3500=3000(1.06)^t
3.5/3.0=1.06^t
take the log of each side
log(3.5)-log(3.0)=t(log1.06)
solve for t.
answer 4 looks promising. check it.
Olivia, why did you not evaluate the equation given to you in the first reply ?
it gives a time of 2.777... or 2.8 years
Bob gave you the calculation using compound interest, the most likely scenario in our 21st Century, and the time for this real-life case would be 2.65 years
I do not know of any bank which pays simple interest for any extended length of time in savings accounts.
To find out how long it will take for your savings account to reach $3,500, we can use the formula for simple interest:
Interest = Principal × Rate × Time
In this case, the principal (P) is $3,000, the interest rate (R) is 6% (which is equivalent to 0.06 in decimal), and we want to find the time (T) it will take for the total amount to be $3,500.
Plugging these values into the formula, we have:
Interest = $3,000 × 0.06 × T
To calculate the interest earned, we subtract the initial principal from the final total:
Interest = $3,500 - $3,000 = $500
Now we can solve for T:
$500 = $3,000 × 0.06 × T
Dividing both sides by $3,000 × 0.06:
$500 / ($3,000 × 0.06) = T
Simplifying the equation:
$500 / $180 = T
T ≈ 2.7777
Therefore, it will take approximately 2.78 years for your savings account to reach $3,500.