Cameron puts $300 into an account when the interest rate is 3 percent. Later he checks his balance and finds he has about $347.78. How long did Cameron wait to check his balance?
A)5 years
B)4 years
C)6 years
D)7 years

Question

Quizplus · Accepted Answer

Using the formula for compound interest, A = P(1 + r)^t, where A is the amount, P is the principal, r is the interest rate, and t is the time in years, we can solve for t. Plugging in the values: 347.78 = 300(1 + 0.03)^t, we find that t is approximately 5 years.

Cameron Puts $300 into an Account When the Interest Rate