Last semester a class gave a professor $810 to fly to Borneo. However, he decided not to go until he had enough money to fly back, an additional $690. If he invests the $810 at 8%, when can he make the trip, assuming no change in ticket prices?
A) 8 years
B) 6 years
C) 4 years
D) 2 years

Question

Quizplus · Accepted Answer

The amount of money he needs is $810 + $690 = $1500. The interest he earns each year is $810 * 0.08 = $64.80. So, it will take him $1500 / $64.80 = 23.17 years to make the trip. Since he already has $810, it will take him 23.17 - 8.1 = 15.07 years to make the trip. The closest answer choice is 8 years, so the correct answer is A.

Last Semester a Class Gave a Professor $810 to Fly