The formula to calculate Simple Interest is given as
[tex]S\mathrm{}I\mathrm{}=\frac{\text{PRT}}{100}[/tex]Where
S.I. = Simple Interest
P = Principal
R = Rate
T = Time
From the question,
S.I. = 980 - 500 = $480
P = $500
R = 8%
To find T,
[tex]T=\frac{100\times S.I.}{P\times R}[/tex]Substituting,
[tex]\begin{gathered} T=\frac{100\times480}{500\times8} \\ T=\frac{48000}{4000} \\ T=12 \end{gathered}[/tex]The account has been open for 12 years.
