Questions: [years Milan opened a savings account with 500, and was paid simple interest at an annual rate of 2%. When Milan closed the account, he was paid 50 in interest. How long was the account open for, in years? x]

Solution Steps

To find out how long the account was open, we can use the formula for simple interest: \( \text{Interest} = \text{Principal} \times \text{Rate} \times \text{Time} \). We know the interest, principal, and rate, so we can solve for time.

We have the following values:

• Principal (\( P \)) = 500
• Annual Interest Rate (\( r \)) = 0.02
• Interest Earned (\( I \)) = 50

The formula for simple interest is given by: \[ I = P \times r \times t \] where \( t \) is the time in years.

Rearranging the formula to solve for \( t \): \[ t = \frac{I}{P \times r} \]

Substituting the known values into the equation: \[ t = \frac{50}{500 \times 0.02} \]

Calculating the value: \[ t = \frac{50}{10} = 5 \]

Final Answer