you deposit 5000 into a savings account. You leave it in there for a certain amount of time. There is a 2% interest rate and after a certain number of years, you withdraw the amount and have 5800. How many years did you leave the deposit in the savings account?

Solution

yo u d e p os i t 5000 in t o a s a v in g s a cco u n t . Y o u l e a v e i t in t h ere f or a cer t ain am o u n t o f t im e . T h ere i s a 2% in t eres t r a t e an d a f t er a cer t ain n u mb er o f ye a rs, yo u w i t h d r a w t h e am o u n t an d ha v e 5800. Ho w man y ye a rs d i d yo u l e a v e t h e d e p os i t in t h e s a v in g s a cco u n t ?

Time : 8

Solution steps

Translate the problem into an equation:

5800 = 5000 (1 + 0.02 t)

Solve for

t, 5800 = 5000 (1 + 0.02 t) : t = 8

Time : 8