Suppose you deposit 600​$ in a bank account with a simple interest rate of ​2.5%. You want to keep your deposit in the bank long enough to earn at least ​120$ in interest. How long should you keep your deposit in the​ bank?

It will take 8 years to earn $120 interest.

Step-by-step explanation:

Principal= $600

Interest= $120

Interest rate= 2.5% = 0.025

To calculate the time required to reach the objective, we need to use the following formula:

I= P*r*t

I= interest

P= principal

r= rate

t= time

We isolate t:

t= I / (P*r)

t= 120 / (600*0.025)

t= 8

It will take 8 years to earn $120 interest.

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