QuestionSimple Interest - Item 20508
You want to put $\$ 2,000$ in a simple interest account. It has a $2.5 \%$ annual interest rate. How long will it take you to earn $\$ 500$ in interest? CleAR CHECK
1 year 6.25 years
10 years 25 years

Studdy Solution
Solve for the unknown variable, which is time $t$.
First, simplify the right side of the equation:
$$500 = 50 \times t$$
Next, solve for $t$ by dividing both sides by 50:
$$t = \frac{500}{50}$$ $$t = 10$$
It will take 10 years to earn $500 in interest.