Question

Jenny's parents deposit $10,000 for her college tuition in an account with a 3% simple interest rate. How long will it take to earn $3600 in interest?

Answer 1

As a start : find out how much interest she gets in one year

Answer 2

whats 3% of $10,000 ?

Answer 3

300 right?

Answer 4

Yes! so each year you get $300 in interest

Answer 5

oh ok thanks!

Answer 6

So how many years does it take to have $3600 in total ?

Answer 7

simply divide 3600 by 300 :

\[\dfrac{3600}{300} = 12\]

so it takes 12 years to earn $3600 in interest

Answer 8

yay!! thx so much

Answer 9

yw :)