Nicole deposited $2,000 at 6%
simple interest. How long will it be
before she has $2,600 in her
account?
I=PRT
600=2000*0.06*t
find t
=5.64
To find out how long it will take for Nicole to have $2,600 in her account with a 6% simple interest rate, we can use the formula for simple interest:
I = P * r * t
Where:
I = interest earned
P = principal amount (initial deposit)
r = interest rate
t = time (in years)
In this case, Nicole deposited $2,000, so P = 2000. The interest rate is 6% or 0.06, so r = 0.06. We're looking for the time it takes to reach $2,600, so we can substitute I = 2600 - 2000 = 600 into the formula.
600 = 2000 * 0.06 * t
Now we can solve for t by rearranging the equation:
600 = 120 * t
Dividing both sides by 120:
t = 600 / 120
t = 5
Therefore, it will take 5 years for Nicole to have $2,600 in her account with a 6% simple interest rate.