You have $3500 that you invest at 7% simple interest. How long will it take for your balance to reach $4235?
A) two years
B) three years
C) four years
D) five years

Question

Quizplus · Accepted Answer

The formula for simple interest is $I = P \times r \times t$, 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, $I = 4235 - 3500 = 735$, $P = 3500$, and $r = 0.07$. Plugging these values into the formula and solving for $t$ gives $t = \frac{735}{3500 \times 0.07} = 3$ years.

You Have $3500 That You Invest at 7% Simple Interest