You want to put $2,500 in a simple interest account. It has a 4% annual interest rate. How long will it take you to earn $200 in interest?
1 Answer
Aug 27, 2017
2 years.
Explanation:
Because this is simple interest, the money will earn the same amount of money each year: 4% of $2500.
4% of 2500 is 100, so...
