Answered

Westonci.ca offers fast, accurate answers to your questions. Join our community and get the insights you need now. Discover a wealth of knowledge from experts across different disciplines on our comprehensive Q&A platform. Experience the convenience of finding accurate answers to your questions from knowledgeable experts on our platform.

Jesse estimates that it will cost $300,000 to send his newborn son to a private college in 18 years. He currently has $65,000 to deposit in an account. What simple interest rate would he need so that $65,000 grows into $300,000 in 18 years? round to the nearest percent.

Sagot :

OneeRa

The simple interest rate would be 20%. The result is obtained by using the simple interest formula.

How to count the interest?

The interest of an amount of money can be counted by the following formula.

I = P₁ - P

I = P × r × t

Where

  • I = interest
  • P = principal amount (initial balance)
  • P = final balance
  • r = simple interest rate
  • t = time period

Jesse now has $65,000 and he deposit it in an account. After 18 years, he wishes the balance will grow into $300,000. Determine the simple interest rate!

First, let's find the interest.

I = P₁ - P

I = $300,000 - $65,000

I = $235,000

The simple interest rate is

I = P × r × t

235,000 = 65,000 × r × 18

r = 235,000 / 1,170,000

r = 0.201

r ≈ 20%

Hence, the simple interest rate he would need to deposit his money is 20%.

Learn more about interest on deposit here:

brainly.com/question/15883247

#SPJ4

Thank you for your visit. We're committed to providing you with the best information available. Return anytime for more. Thanks for using our platform. We aim to provide accurate and up-to-date answers to all your queries. Come back soon. Westonci.ca is committed to providing accurate answers. Come back soon for more trustworthy information.