Hello There!
"Percent" means "per 100" or "over 100". So, to convert 0.007 to percent we rewrite 0.007 in terms of "per 100" or over 100.
Multiply 0.007 by 100/100. Since 100/100 = 1, we are only multiplying by 1 and not changing the value of our number.
X
=
Therefore, we have shown that
0.007 = 0.7%
The required it will take 10 years to earn $500 in interest. Option C is correct.
Simple interest is a quick and simple formula for figuring out how much interest will be charged on a loan.
SI= Principal×rate×time]
Here,
The formula for simple interest is:
I = Prt
We know that the principal (P) is $2,000, the interest rate (r) is 2.5% or 0.025 as a decimal, and we want to find the time (t) it takes to earn $500 in interest.
Substituting these values into the formula, we get:
$500 = 2,000 * 0.025 * t
$500 = 50t
t = 500 / 50 = 10 years
Therefore, it will take 10 years to earn $500 in interest.
Learn more about simple interests here:
#SPJ6