Mariah22
Answered

Sam opened a money-market account that pays 2% simple interest. He started the account with $7,000 and made no further deposits. When he closed the account, he had earned $280 in interest. How long did he keep his account open?

A2 years
B5 years
C3 years
D4 years

Verified Answer :

The formula for simple interest = 

I = PRT
P = initial capital = $7000
R = rate = 0.02 in this case
T = time = our variable we are solving for

Thus substitute the parts into the equation we get
280 = 70000.02T
Solving for T we get A or 2 years

elizabethwise

2 years. He kept his account open for 2 years.

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