PLEASE HELP!!!!! -You deposit $5,000 in an account that earns 5% simple interest. How long will it be before the total amount is $6,000?
I = PRT
1,000 = 5,000 * 0.05 * t
1,000 = 250 * t
1,000/250 = t
4 = t
4 years
THANKS!! I needed to remember I=PRT
Yep.
Although I've forgotten a lot of formulas -- I've remembered I=PRT for over 60 years! <g>
To find out how long it will take for the total amount to reach $6,000, you can use the formula for simple interest:
A = P(1 + rt)
Where:
A = Final amount in the account
P = Principal amount (initial deposit)
r = Interest rate (as a decimal)
t = Time (in years)
In this case, we know the principal amount (P) is $5,000, the interest rate (r) is 5% (or 0.05 as a decimal), and the desired final amount (A) is $6,000.
Let's substitute these values into the formula:
$6,000 = $5,000(1 + 0.05t)
Now, let's solve for t:
Divide both sides of the equation by $5,000:
$6,000 / $5,000 = 1 + 0.05t
Simplifying the left side:
1.2 = 1 + 0.05t
Subtract 1 from both sides:
0.2 = 0.05t
Divide both sides of the equation by 0.05:
0.2 / 0.05 = t
t = 4
Therefore, it will take 4 years for the total amount in the account to reach $6,000.