About 2 years
How Long Will Lucy Have To Wait Before For Her $2,500 Invested At 6% Earns $600 In Simple Interest?
The correct answer is 4yrs. Note the 6% is a "simple rate" meaning she gets 6% on the original investment and not what is earned every year.
6% or .06 of 25,000 = 150 (this is what she makes in 1 year)
6% or .06 of 25,000 = 150 (this is what she makes in 2 years)
etc.
150 x 4yrs = 600:)
6% or .06 of 25,000 = 150 (this is what she makes in 1 year)
6% or .06 of 25,000 = 150 (this is what she makes in 2 years)
etc.
150 x 4yrs = 600:)