Nicole deposited $2,000 at 6%
simple interest. How long will it be
before she has $2,600 in her
account?
F. 4 Years
G. 5 Years
H. 6 Years
J. 7 Years
It will be 5 years. Correct?
I = PRT
600 = 2,000 * 0.06 * t
Solve for t.
5 * .06 * 2000 = 600
so yes
and see you can check it easily :)
To determine the time it will take for Nicole to reach $2,600 in her account with a $2,000 principal deposit and a 6% simple interest rate, we can use the formula for simple interest:
I = P * r * t
Where:
I = Interest earned
P = Principal amount (initial deposit)
r = Interest rate per period (in decimal form)
t = Time (in years)
In this case, we know that the principal amount is $2,000 (P), the interest rate is 6% (r), and the final amount is $2,600. We need to find the time it will take for Nicole to accumulate this amount. Rearranging the formula, we get:
t = (I / (P * r)
First, we calculate the Interest earned (I):
I = $2,600 - $2,000 = $600
Next, we substitute the known values into the formula to calculate the time (t):
t = (600 / (2000 * 0.06) = 5 years
Therefore, it will take 5 years for Nicole to have $2,600 in her account.
The correct answer is option G: 5 Years.