How many years was the money in the account?Gloria deposited $500 into a bank account that earned 7.5% simple interest each year. She earned $225 in interest before closing the account.
No money was deposited into or withdrawn from the account.
How many years was the money in the account?
225 = n (0.075)(500)
n = 6
To find out how many years the money was in the account, we can use the formula for simple interest:
Interest = Principal × Rate × Time
In this case, the principal (P) is $500, the rate (R) is 7.5% or 0.075, and the interest earned (I) is $225.
Substituting these values into the formula, we get:
$225 = $500 × 0.075 × Time
Now we can solve for Time:
Time = $225 / ($500 × 0.075)
Time = $225 / $37.5
Time = 6 years
Therefore, the money was in the account for 6 years.
To find out how many years the money was in the account, you can use the formula for simple interest:
Interest = Principal × Rate × Time
In this case, the principal amount (P) is $500, the interest earned (I) is $225, and the interest rate (R) is 7.5%.
Plugging these values into the formula, we have:
$225 = $500 × 0.075 × Time
Next, we can solve for Time:
Time = $225 / ($500 × 0.075)
Time = 6 years
Therefore, the money was in the account for 6 years.