Roland's mom saved money for college she put $5,000 into savings account with a 4% interest rate when she withdrew it it had earned 400 dollars in interest . How many years was the money in the bank?
I = prt
400 = 5,000 * 0.04 * t
400 = 200 t
400/200 = t
2 = t
To determine the number of years the money was in the bank, we can use the formula for calculating interest:
Interest = Principal amount * Interest rate * Time
In this case, the principal (initial amount) is $5,000, the interest rate is 4%, and the interest earned is $400. We need to solve for time.
Let's substitute the known values into the formula:
$400 = $5,000 * 0.04 * Time
Now we can solve for Time:
Time = $400 / ($5,000 * 0.04)
Time = $400 / $200
Time = 2 years
Therefore, Roland's mom's money was in the bank for 2 years.