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

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