SOLUTION: You have $8000 you would like to deposit into an interest paying account. You find a simple interest account that pays 2% annually. How long must you invest that money in order to

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Question 270853: You have $8000 you would like to deposit into an interest paying account. You find a simple interest account that pays 2% annually. How long must you invest that money in order to earn $400 in interest?
Found 2 solutions by rfer, josmiceli:
Answer by rfer(16322)   (Show Source): You can put this solution on YOUR website!
i=Prt
t=i/Pr
t=400/8000*.02
t=400/160
t=2.5 yrs

Answer by josmiceli(19441)   (Show Source): You can put this solution on YOUR website!
If the 2% interest on the principle is
reinvested each year,




-----------------------





The $8000 must be invested for 2.5 years


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