Answered

Susan deposits $1,200 in an account that earns 8% simple interest annually. In how many months will Susan's account balance reach $1,344? (Use the simple interest formula I=prt, where I = interest, p = principal or amount borrowed, r = rate, and t = time in years.)

Verified Answer :

You need to calculate the interest between the initial amount ($1200) and the final amount ($1344). The difference is $144, this is the interest that you need to gain. 


\(I = prt\)

\(144 = 1200 * 0.08 * t\)


\(144 = 96t\) 

\(t = 1.5 years\)

Convert 1.5 years into months

\(1.5 years * 12 months/year = 18 months\)

Hope you understand

Related Questions