In 2001, John invests x dollars in a special account that yields y% simple interest annually. If he has $250 in his account in 2006 and in 2008 he has $270 in his account, what is x + y?
(A) 5
(B) 25
(C) 200
(D) 205
(E) 210
SI, thus the yearly increase in the amount is a constant.
2006-08 (2 years gap)and since its simple interest the amount increase will be the same or $10
Now, since we need to find our initial amount first, we need to subtract 5 years of gain from 2001-2006
Which equals $270-$50(5x$10) = 200
Once we have our initial amount and we know that our annual interest is $10 , we can find rate
which is 10/200 or 5%
So, x+y = 200+5=$205