You currently have $1,200 and you need $1,750 in 4 years. What rate do you need to invest at to hit your goal?

Question

You currently have $1,200 and you need $1,750 in 4 years. What rate do you need to invest at to hit your goal?

in progress 0
Cora 11 mins 2021-11-25T14:36:12+00:00 1 Answer 0 views 0

Answers ( )

    0
    2021-11-25T14:37:40+00:00

    Answer:

    You need to invest at the rate of 11.46% a year to hit your goal.

    Step-by-step explanation:

    This is a simple interest problem.

    The simple interest formula is given by:

    E = P*I*t

    In which E are the earnings, P is the principal(the initial amount of money), I is the interest rate(yearly, as a decimal) and t is the time.

    After t years, the total amount of money is:

    T = E + P.

    In this problem, we have that:

    T = 1750, P = 1200, t = 4

    We want to find I. So

    First we have to find E

    T = E + P.

    1750 = E + 1200.

    E = 550

    Now, we apply at the formula.

    E = P*I*t

    550 = 1200*I*4

    4800I = 550

    I = \frac{550}{4800}

    I = 0.1146

    You need to invest at the rate of 11.46% a year to hit your goal.

Leave an answer

45:7+7-4:2-5:5*4+35:2 =? ( )