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Sam opened a money-market account that pays 2% simple interest. He started the account with $7,000 and made no further deposits. When he closed the account, he had earned $560 in interest. How long did he keep his account open?

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2 answers
  1. 7000*n*.02 = 560
    n = 4 years

    check:
    2% interest per year is $140 x 4 = $560

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  2. Question 3

    Terry invests $3,000, at 10% interest, compounded semiannually for 12 years. Use the compound interest formula to calculate the compound amount for his investment.
    a.
    $9,675.30
    b.
    $6,760.00
    c.
    $6,663.28
    d.
    $9,860.00

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