Question

Sara was disappointed by returns she got by ao bank she wants to create her savings account in new bank the pays a better interest at rate of 3.5% , if she moves 2500 rs to new bank how long will it take for her to earn 700 apply simple interest

Answer 1

Given:

Bank interest rate = 3.5%

Amount placed in the bank = Rs 2500

To Find:

The number of year for her to earn Rs 700 in interest.

Solution:

Find the interest earned for a year:

Interest = 3.5% of Rs 2500

Interest = 0.035 x 2500

Interest = Rs 87.50

Find the number of years needed:

Interest wanted = Rs 700

Interest earned a year = Rs 87.50

Number of years needed = 700 ÷ 87.50

Number of years needed = 8 years

Answer: She will need  8 years to earn Rs 700 interest in this new bank.