Question

mike saves $2,000 at a yearly simple interest rate of 2%. how many years does it take to earn $280 in interest?

Explanation:

Step1: Recall simple interest formula

Simple Interest: $I = P \times r \times t$ where $I=280$, $P=2000$, $r=0.02$

Step2: Rearrange for time $t$

$t = \frac{I}{P \times r}$

Step3: Substitute values

$t = \frac{280}{2000 \times 0.02} = \frac{280}{40} = 7$

Answer:

7 years