Joe Flynn visits his local bank to see how long it will take for $1,200 to amount to $2,100 at a simple interest rate of 7%. The time is (round time in years to nearest tenth):
A)9.2 years
B)11.1 years
C)10.7 years
D)17.1 years
E)None of these

Question

Quizplus · Accepted Answer

We can use the formula:
Simple Interest = (Principal x Rate x Time)
To find the time taken to get from $1,200 to $2,100 at a rate of 7%, we can set up the equation:
$2,100 - $1,200 = ($1,200 x 0.07 x Time)
$900 = $84 x Time
Time = $900/$84
Time ≈ 10.7 years (rounded to the nearest tenth)

Joe Flynn Visits His Local Bank to See How Long