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 $700 in interest. How long did he keep his account open?
A.
5 years
B.
2 years
C.
4 years
D.
3 years

Answer 1

@FortyTheRapper

Answer 2

ok all help you

Answer 3

Let's start off by converting the percent into a decimal.
What would 5% be as a decimal

Answer 4

#2. $2,145.00 (assuming that interest is simple like the previous question)
#3. $12,150.00
#4. $8,000

Answer 5

0.05

Answer 6

Nice,

So now we have \[(7000)(.05)= 1 year\] -- $7,000 being the deposit and .05 the interest.
Then it should be easy from there

Answer 7

350=1year

Answer 8

Right! Now how can we get 2 years? Same way

\[\frac{ 350 }{ 1 }=\frac{ x }{ 2 }\]

Answer 9

350+350=700 so it would be 2 years

Answer 10

Exactly!

Answer 11

thanks so much

Answer 12

Np