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# If interest on a savings account is paid at an annual rate

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Manager
Joined: 22 Jul 2003
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If interest on a savings account is paid at an annual rate [#permalink]

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04 Aug 2003, 14:07
This topic is locked. If you want to discuss this question please re-post it in the respective forum.

If interest on a savings account is paid at an annual rate of 6.25% and if interest is not reinvested, then how many years will the total amount of interest earned equal the amount of money saved in the account?

(1) 36
(2) 24
(3) 18
(4) 16
(5) 12

I am quoting the problem as it is from a book. I have made no changes to the language of the problem.
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Joined: 18 Jul 2003
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04 Aug 2003, 22:53
16 years.

Int. = P * N * R/100

in this case if principal is 100,

100 = 100 * N * 6.25/100

solving gives,

N = 16 years
04 Aug 2003, 22:53
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# If interest on a savings account is paid at an annual rate

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