Harper opened an account with a deposit of $2,500.
The account earned annual simple interest of 4%
She did not make any additional deposits or withdrawals.
When she closed the account, the balance of the account was $3,300.
How long was the account open?
9 years
8 years
5 years
6 years
The formula to calculate the total balance after a certain number of years with simple interest is:
Total Balance = Principal + (Principal * interest rate * number of years)
In this case, Harper's total balance was $3,300 and her initial deposit was $2,500. The interest rate was 4%. We need to find out the number of years.
So, the equation would be:
$3,300 = $2,500 + ($2,500 * 0.04 * number of years)
$800 = $100 * number of years
number of years = 8
Therefore, the account was open for 8 years.