Math / Algebra

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

STEP 1

1. The principal amount is $2,000.<br />2. The annual interest rate is 2.5%.<br />3. The interest earned is$ 500.
4. We are trying to find the time in years it takes to earn $500 in interest.

STEP 2

1. Understand the simple interest formula.
2. Substitute known values into the formula.
3. Solve for the unknown variable, which is time.

STEP 3

Understand the simple interest formula. The formula for simple interest is given by:
$I = P \times r \times t$
where $I$ is the interest earned, $P$ is the principal amount, $r$ is the annual interest rate (in decimal form), and $t$ is the time in years.

STEP 4

Substitute known values into the formula. We know $I = 500$ , $P = 2000$ , and $r = 2.5\% = 0.025$ .
$500 = 2000 \times 0.025 \times t$

STEP 5

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.

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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

STEP 1

1. The principal amount is $2,000.<br />2. The annual interest rate is 2.5%.<br />3. The interest earned is$ 500.
4. We are trying to find the time in years it takes to earn $500 in interest.

STEP 2

1. Understand the simple interest formula.
2. Substitute known values into the formula.
3. Solve for the unknown variable, which is time.

STEP 3

Understand the simple interest formula. The formula for simple interest is given by:
$I = P \times r \times t$
where $I$ is the interest earned, $P$ is the principal amount, $r$ is the annual interest rate (in decimal form), and $t$ is the time in years.

STEP 4

Substitute known values into the formula. We know $I = 500$ , $P = 2000$ , and $r = 2.5\% = 0.025$ .
$500 = 2000 \times 0.025 \times t$

STEP 5

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.

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QuestionSimple Interest - Item 20508You want to put $2,000\$ 2,000$2,000 in a simple interest account. It has a 2.5%2.5 \%2.5% annual interest rate. How long will it take you to earn $500\$ 500$500 in interest? CleAR CHECK1 year 6.25 years10 years 25 years

Studdy Solution

STEP 1

1. The principal amount is 2,000.<br/>2.Theannualinterestrateis2.52,000.<br />2. The annual interest rate is 2.5%.<br />3. The interest earned is 2,000.<br/>2.Theannualinterestrateis2.5500.4. We are trying to find the time in years it takes to earn $500 in interest.

STEP 2

1. Understand the simple interest formula.2. Substitute known values into the formula.3. Solve for the unknown variable, which is time.

STEP 3

Understand the simple interest formula. The formula for simple interest is given by:I=P×r×t I = P \times r \times t I=P×r×twhere I I I is the interest earned, P P P is the principal amount, r r r is the annual interest rate (in decimal form), and t t t is the time in years.

STEP 4

Substitute known values into the formula. We know I=500 I = 500 I=500, P=2000 P = 2000 P=2000, and r=2.5%=0.025 r = 2.5\% = 0.025 r=2.5%=0.025.500=2000×0.025×t 500 = 2000 \times 0.025 \times t 500=2000×0.025×t

STEP 5

Solve for the unknown variable, which is time t t t.First, simplify the right side of the equation:500=50×t 500 = 50 \times t 500=50×tNext, solve for t t t by dividing both sides by 50:t=50050 t = \frac{500}{50} t=50500​ t=10 t = 10 t=10It will take 10 years to earn $500 in interest.

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Download Studdy AI Tutor now. Learn with ease and get all help you need to be successful at school.

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

1. The principal amount is $2,000.<br />2. The annual interest rate is 2.5%.<br />3. The interest earned is$ 500.
4. We are trying to find the time in years it takes to earn $500 in interest.

1. Understand the simple interest formula.
2. Substitute known values into the formula.
3. Solve for the unknown variable, which is time.

Understand the simple interest formula. The formula for simple interest is given by:
$I = P \times r \times t$
where $I$ is the interest earned, $P$ is the principal amount, $r$ is the annual interest rate (in decimal form), and $t$ is the time in years.

Substitute known values into the formula. We know $I = 500$ , $P = 2000$ , and $r = 2.5\% = 0.025$ .
$500 = 2000 \times 0.025 \times t$

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.