Stacey currently has an account balance of $1,007.78. Her initial deposit on the account was $616 and it earned 5.3% simple interest. How long has Stacey held the account?

Question

Shadow · Answer

Hello

Shadow · Answer

Let me know if you are here and I can help you solve this problem real quick.

kaly · Answer

Yes I am here. I have been trying to figure this answer out for almost an hour and cant figure the answer out!!!

Shadow · Answer

Well, it is quite simple. You will be using the simple interest formula:
$$A = P(1 + rt)$$
A = Total Accrued Amount (principal + interest)
P = Principal Amount
I = Interest Amount
r = Rate of Interest per year in decimal; r = R/100
R = Rate of Interest per year as a percent; R = r * 100
t = Time Period involved in months or years

Shadow · Answer

Does that look familiar to you?

kaly · Answer

Parts of that does look very familiar. Not all of it but alot yes.

Shadow · Answer

Let me break it down for you. 
P, or the principal amount, is the $ you started with, which is $616 in this case.

A, or the accrued amount, is the $ you started + the $ you earned (also known as I, the interest amount).

r is simply the rate given that shows you how much money you get. Since this problem doesn't state a specific period such as daily, or monthly, we will assume that it is the standard annually (aka yearly, or per year).

t is what we are trying to solve for, which is the amount of time, in years, that Stacey had the account.

Shadow · Answer

Do you see how we might put this problem together?

kaly · Answer

Yes I do and I do believe that I can figure out the answer now myself.. Thank you for helping!!