You want to save $4,500 to buy an above-ground swimming pool. You deposit $3,750 in an account earning 5.5% simple interest. After how long will you have enough money in the account to purchase the pool? Round your answer to the nearest whole number. You will have enough money after about years.

Question

Mathematics

Gummy Pop

31 January, 09:10

You want to save $4,500 to buy an above-ground swimming pool. You deposit $3,750 in an account earning 5.5% simple interest. After how long will you have enough money in the account to purchase the pool? Round your answer to the nearest whole number. You will have enough money after about years.

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Answers (1)

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Precious · Answer 1

Assuming the price of the pool does not change, then

Additional interest required is 4500-3750=750

using

I=Pit, we set up equation

750=3750*0.055*t

Solve for t

t=750 / (3750*0.055) = 3.64 years.

So will need to wait 3.64 years, or rounded up to 4 years.