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You want to save $10,000 to buy a new car You doposit 6500in an account earning 7.5% simple interest. After how long will you have enough mo
Question
You want to save $10,000 to buy a new car You doposit 6500in an account earning 7.5% simple interest. After how long will you have enough money
in the account to purchase the car? Round your answer to the nearest whole number
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Mathematics
6 months
2021-08-28T10:45:39+00:00
2021-08-28T10:45:39+00:00 1 Answers
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Answer:
After 7.5 years we will have enough money in the account to purchase the car.
Step-by-step explanation:
Amount needed to be saved = $10000
Principal = $6500
So, Simple Interest = $3500
Rate of Interest = 7.5%
= 0.075
Now, Simple Interest = Principal × Rate × Time
⇒ 3500 = 6500 × 0.075 × Time
⇒ 3500 = 487.5 × Time
⇒ Time = 7.18 years ≈ 7.5 years
Hence, after 7.5 years we will have enough money in the account to purchase the car.
Step-by-step explanation: