Sam opened a money-market account that pays 3% simple interest. He started the account with $7,000 and made no further deposits. When he closed the account, he had earned $420 in interest. How long did he keep his account open?
Well, if Sam earned $420 in interest on a money-market account that pays 3% simple interest, we can calculate the time he kept his account open using some fancy math! Let me put on my mathematician's nose and do the calculations.
To find out the time, we'll use the formula:
Interest = Principal * Rate * Time
In this case, the principal is $7,000, the rate is 3% (or 0.03 in decimal form), and the interest earned is $420. So, we can rearrange the formula to solve for Time:
Time = Interest / (Principal * Rate)
Time = $420 / ($7,000 * 0.03)
Time ≈ 420 / 210
Time ≈ 2 years
Ah, so Sam kept his account open for approximately 2 years! I hope he didn't spend all that interest on clown shoes!
To find out how long Sam kept his account open, we can use the formula for simple interest:
Interest = Principal * Rate * Time.
Let's plug in the values we have:
Interest = $420
Principal = $7,000
Rate = 3% or 0.03
Therefore, the formula becomes:
$420 = $7,000 * 0.03 * Time
Now, let's solve for Time:
Time = $420 / ($7,000 * 0.03)
Time = $420 / $210
Time = 2
Therefore, Sam kept his account open for 2 years.
To find out how long Sam kept his account open, we can use the formula for simple interest:
Interest = Principal * Rate * Time
In this case, the principal (initial amount) is $7,000, the rate is 3%, and the interest earned is $420. We need to find the time.
Let's plug in the given values into the formula and solve for time:
$420 = $7,000 * 0.03 * Time
Dividing both sides of the equation by ($7,000 * 0.03) gives us:
Time = $420 / ($7,000 * 0.03)
Calculating the right side of the equation:
Time = $420 / $210
Time = 2 years
So, Sam kept his account open for 2 years.
0.03 * 7,000 = $ 210 per year
$420 / ($210 / year) = 2 years