Answer:
[tex]3\ years[/tex]
Step-by-step explanation:
we know that
The simple interest formula is equal to
[tex]A=P(1+rt)[/tex]
where
A is the Final Investment Value
P is the Principal amount of money to be invested
r is the rate of interest
t is Number of Time Periods
in this problem we have
[tex]t=?\ years\\ P=\$600\\ A=\$600+\$45=\$645\\r=0.025[/tex]
substitute in the formula above and solve for t
[tex]645=600(1+0.025t)[/tex]
[tex]t=[(645/600)-1]/0.025=3\ years[/tex]
