Respuesta :
Answer:
It will take 23 years for the account to grow to $7000.
Step-by-step explanation:
Simple Interest
The simple interest formula is given by:
[tex]E = P*I*t[/tex]
In which E is the amount of interest earned, P is the principal(the initial amount of money), I is the interest rate(yearly, as a decimal) and t is the time.
After t years, the total amount of money is:
[tex]T = E + P[/tex]
Carly has a bank account with a balance of $3,575.
This means that [tex]P = 3575[/tex]
The account pays simple interest at a rate of 4.15%.
This means that [tex]I = 0.0415[/tex]
How long will it take for the account to grow to $7000?
[tex]T = 7000[/tex]
The interest is:
[tex]T = E + P[/tex]
[tex]E = T - P = 7000 - 3575 = 3425[/tex]
Now we have to find t.
[tex]E = P*I*t[/tex]
[tex]3425 = 3575*0.0415*t[/tex]
[tex]t = \frac{3425}{3575*0.0415}[/tex]
[tex]t = 23.1[/tex]
Rounding to the nearest year, it will take 23 years for the account to grow to $7000.
