Suppose you deposit $5,000 in a savings account that earns 3% annual interest. If you make no other withdrawals or deposits, how many years will it take the account balance to reach at least $6,000?
10 years
6 years
7 years
4 years

Question

Suppose you deposit $5,000 in a savings account that earns 3% annual interest. If you make no other withdrawals or deposits, how many years will it take the account balance to reach at least $6,000?  
10 years
6 years
7 years
4 years

anonymous · Answer

7 years

anonymous · Answer

3% of 5000 is 150, so after 7 years, you'll have 1050 saved of interest, plus the original 5000= 6050.

anonymous · Answer

Gotcha, that makes sense! Thank you so much!

anonymous · Answer

no problem :)