ina wants to earn an extra 110 so that she can afford to buy a new phone. How many years will it take Nina to earn enough interest if she invests 1000 with her local bank at a simple interest rate of 5.5% pa?It will take Nina years to earn enough interest.

Solution

ina w an t s t o e a r n an e x t r a 110 so t ha t s h e c an a ff or d t o b u y a n e w p h o n e . Ho w man y ye a rs w i ll i t t ak e N ina t o e a r n e n o ug h in t eres t i f s h e in v es t s 1000 w i t h h er l oc a l bank a t a s im pl e in t eres t r a t e o f 5.5% p a ? I t w i ll t ak e N ina ye a rs t o e a r n e n o ug h in t eres t .

Time : 2

Solution steps

Translate the problem into an equation:

110 = 1000 \cdot 0.055 t

Solve for

t, 110 = 1000 \cdot 0.055 t : t = 2

Time : 2