Question

Sam opened a money-market account that pays 5% simple interest. He started the account with $7,000 and made no further deposits. When he closed the account, he had earned $1,750 in interest. How long did he keep his account open?

Answer 1

No

Answer 2

it says simple interest so we can use this formula
\[I = Prt\]
I = interest
P = principle
r = interest rate
t = time in years

Answer 3

Do you just multiply it all ?

Answer 4

you're solving for time, so it won't all be multiplication. You have to plug in the numbers and solve for \(t\)

Answer 5

So you multiply then divide?

Answer 6

yes

Answer 7

Im confused on what to multiply

Answer 8

we have to set up the equation. Did you substitute the numbers from the problem for the variables in the formula.

Interest = 1750 → put that where \(I\) is in the formula
Principle = 7000 → put that where \(P\) is
Interest rate as a decimal = 0.05 → put that where \(i\) is
time is what we're solving for

Answer 9

Thanks I found the answer of 5

Answer 10

yes that's right