Question

Keisha's parents want to save twenty-five thousand dollars in her college savings account over the next twenty years. They have ten thousand dollars to use as an initial deposit. What simple annual interest rate do they need to meet their goal? Round your answer to the nearest tenth.

four point five percent

five percent

seven point five percent

twelve point five percent

Answer 1

@akashdeepdeb

Answer 2

hi

Answer 3

hello

Answer 4

this is a hard problem for me

Answer 5

Time = 20 years
Initial deposit or Principal = 10,000 bucks
Amount they actually want = 25,000 bucks
Interest then would be = Amount - Principal = 15,000 bucks

Rate = ?

Simple Interest = Principal * Rate/100 * Time

15000 = 10000 * x/100 * 20 [SOLVE THIS TO GET RATE]

15 * 5/10 = x
x = 7.5%

Understood? :)

Answer 6

thank you

Answer 7

:)