Maths · Arithmetic and Geometric progressions

A company deposits in bank with an interest rate of . After how many years will

A company deposits \( \$ 200 \) in bank with an interest rate of \( 5 \% \). After how many years will the amount increase by \( \$ 50 \) with the same interest rate?

  • A. 5
  • B. 10
  • C. 15
  • D. 25

Step-by-step solution

Using simple interest formula I = P * r * t, with I = 50, P = 200, r = 0.05, we get 50 = 200 * 0.05 * t → 50 = 10t → t = 5 years.
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