You deposit $5000 into an account that earns 3.5% per year simple interest. How many years will it take for the amount in the account to reach at least $18600?
help
To determine the number of years it will take for the amount in the account to reach at least $18600, we can use the formula for simple interest:
Simple Interest = Principal * Interest Rate * Time
Let's break down the given information:
Principal (P) = $5000 (initial deposit)
Interest Rate (R) = 3.5% = 0.035 (in decimal form)
Amount (A) = $18600 (target amount)
Using the formula, we can rearrange it to solve for Time (T):
Time = Amount / (Principal * Interest Rate)
Plugging in the values:
Time = $18600 / ($5000 * 0.035)
Now, we can calculate the time it will take for the amount to reach at least $18600.