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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?

Answer 1

Julia Adams

10 years

The amount of interest for one year is #I=2.5/100x2000= 50 $# therefore the time for 500 $ is #500/50 = 10# years

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Answer 2

Jace Anderson

To calculate the time it takes to earn $500 in interest on a simple interest account with a$ 2,000 principal and a 2.5% annual interest rate, you can use the formula:

[I = P \times r \times t]

Where:

(I) is the interest earned,
(P) is the principal amount ($2,000 in this case),
(r) is the interest rate (as a decimal, so 0.025 for 2.5%),
(t) is the time in years.

Rearranging the formula to solve for (t), we get:

[t = \frac{I}{P \times r}]

Substituting the given values, we have:

[t = \frac{500}{2000 \times 0.025}]

[t = \frac{500}{50}]

[t = 10]

It will take 10 years to earn $500 in interest on the$ 2,000 principal at a 2.5% annual interest rate.

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Answer from HIX Tutor

When evaluating a one-sided limit, you need to be careful when a quantity is approaching zero since its sign is different depending on which way it is approaching zero from. Let us look at some examples.