Hector puts $150 into an account when the interest rate is 4 percent.Later he checks his balance and finds he has about $168.73.How long did Hector wait to check his balance?
A)3 years
B)3.5 years
C)4 years
D)4.5 years

Question

Quizplus · Accepted Answer

The interest earned is $168.73 - $150 = $18.73. The interest rate is 4%, so the interest earned after 1 year is $150 * 0.04 = $6. The interest earned after 2 years is $150 * 0.04 * 2 = $12. The interest earned after 3 years is $150 * 0.04 * 3 = $18. So Hector waited 3 years to check his balance.

Hector Puts $150 into an Account When the Interest Rate