8) megan is currently in 8th grade and wants to begin saving money for college. she wants to invest $2000 in…

8) megan is currently in 8th grade and wants to begin saving money for college. she wants to invest $2000 in a simple - interest account that pays at a rate of 3.5%. how many years will she have to save for the account to gain $490 in simple interest?

8) megan is currently in 8th grade and wants to begin saving money for college. she wants to invest $2000 in a simple - interest account that pays at a rate of 3.5%. how many years will she have to save for the account to gain $490 in simple interest?

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=$2000$, $I = $490$, and $r=3.5%=0.035$. We need to solve for $t$.

Step2: Rearrange the formula 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 values

Substitute $I = 490$, $P = 2000$, and $r=0.035$ into the formula for $t$. $t=\frac{490}{2000\times0.035}$ First, calculate $2000\times0.035 = 70$. Then, $t=\frac{490}{70}=7$.

Answer:

B. 7 years