An account was opened with $1,000 three years ago. Today, the account balance is $1,157.63. If the account earns simple interest, how long will it take until the account has earned a total of $225 in interest?
A) Less than one more year.
B) Between one and two more years.
C) Between two and three more years.
D) Between three and four more years.
E) Between four and five more years.

Question

Quizplus · Accepted Answer

The account has earned $157.63 in three years. To earn an additional $67.37 ($225 - $157.63) at the same rate, it will take less than one year since $67.37 is less than $157.63, which was earned in three years. Therefore, it will take between one and two more years to reach a total of $225 in interest.

An Account Was Opened with $1,000 Three Years Ago