Question

accounts orenda opened a savings account with $4500 that earns 0.6% simple interest annually. after how many years will the balance of the account be $4635? round to the nearest tenth, if necessary. years

Explanation:

Step1: Recall simple interest formula

The simple interest formula for total amount is $A = P(1 + rt)$, where:

• $A$ = final amount, $P$ = principal, $r$ = annual interest rate (decimal), $t$ = time in years.

Step2: Convert rate to decimal

$r = \frac{0.6\%}{100} = 0.006$

Step3: Plug in known values

Substitute $A=4635$, $P=4500$, $r=0.006$:
$4635 = 4500(1 + 0.006t)$

Step4: Isolate the parenthetical term

Divide both sides by 4500:
$\frac{4635}{4500} = 1 + 0.006t$
$1.03 = 1 + 0.006t$

Step5: Solve for $t$

Subtract 1 from both sides, then divide by 0.006:
$0.03 = 0.006t$
$t = \frac{0.03}{0.006}$

Answer:

5.0 years