How long will it take for $500 to amount to $850 at 10% simple interest?
A) 10 years
B) 5 years
C) 3.5 years
D) 7 years
E) none of the above

Question

Quizplus · Accepted Answer

Simple interest can be calculated using the formula $I = P \times r \times t$, where $I$ is the interest earned, $P$ is the principal amount, $r$ is the annual interest rate, and $t$ is the time in years. Here, we want the total amount to be $850 from an initial $500, which means the interest earned is $850 - $500 = $350. With a 10% interest rate ($r = 0.10$), we solve for $t$ in $350 = 500 \times 0.10 \times t$, giving $t = 7$ years.

How Long Will It Take for $500 to Amount to $850