Multiple choice

Jack kept \$56,000 in his bank account at simple interest annually. After some years, he received the total amount as \$64,400 including interest. If the rate of interest provided by the bank was 5%, then for how many years did he keep the amount in the bank?

  1. One year

  2. Two years

  3. Three years

  4. Four years

  5. Five years
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Simple interest = Total amount - Principal = 64400 - 56000 = 8400. Using SI = (P * R * T) / 100, we get 8400 = (56000 * 5 * T) / 100. Solving for T gives 8400 = 2800 * T, so T = 3 years.

AI explanation

First, find the total simple interest earned by subtracting the principal from the final amount, which is 64400 minus 56000, giving 8400. Using the formula for Simple Interest, I = P * R * T / 100, we get 8400 = (56000 * 5 * T) / 100. Simplifying this yields 8400 = 2800 * T, meaning T equals 3 years.

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