11) if lana deposits $500 into a savings account that gains simple interest at a rate of 2% annually, how…

11) if lana deposits $500 into a savings account that gains simple interest at a rate of 2% annually, how many years will it take for the account to gain $100 in interest? 11 years 9 years 10 years 8 years

11) if lana deposits $500 into a savings account that gains simple interest at a rate of 2% annually, how many years will it take for the account to gain $100 in interest? 11 years 9 years 10 years 8 years

Answer

Explanation:

Step1: Recall simple - interest formula

The simple - interest formula is $I = Prt$, where $I$ is the interest, $P$ is the principal amount, $r$ is the annual interest rate (in decimal form), and $t$ is the time in years. Given $P=$500$, $r = 2%=0.02$, and $I = $100$.

Step2: Rearrange the formula to solve for $t$

From $I = Prt$, we can solve for $t$ by dividing both sides of the equation by $Pr$. So, $t=\frac{I}{Pr}$.

Step3: Substitute the given values into the formula for $t$

Substitute $I = 100$, $P = 500$, and $r=0.02$ into the formula: $t=\frac{100}{500\times0.02}$. First, calculate $500\times0.02 = 10$. Then, $\frac{100}{10}=10$.

Answer:

10 years