DJ opened an account with a deposit of $4,500.
The account earned annual simple interest of 3%
She did not make any additional deposits or withdrawals.
When she closed the account, the balance of the account was $5,715.
How long was the account open?
9 years
10 years
8 years
11 years
The formula to calculate simple interest is:
I = PRT
Where:
I = simple interest earned
P = principal amount (initial deposit)
R = interest rate per period
T = number of periods
Given:
P = $4,500
R = 3% = 0.03
I = $1,215
Plugging these values into the formula, we get:
$1,215 = $4,500 * 0.03 * T
T = $1,215 / ($4,500 * 0.03)
T = 9
Therefore, the account was open for 9 years.