Question

Keisha's parents want to save twenty thousand dollars in her college savings account over the next fifteen years. They have eight 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.

two point five percent

two point seven percent

ten percent

twelve percent

Answer 1

@Easyaspi314

Answer 2

@tester97

Answer 3

Its my last question :D

Answer 4

I = prt (I = interest ; p = principal; r =rate; t = time)

You are given 3 out of the 4 values in the equation. Substitute and solve. You are looking for the r, rate of interest). Straightforward problem.

Answer 5

@Easyaspi314 I dont get it??

Answer 6

p = principal..the money you start off with. which is 8,000 in this problem.

t = # of years...whic is 15 in this problem.

I = interest...they want the interest to be $12,000 (as they are starting off with $8,000 and want to end off with $20,000...so they want to make $12,000 in interest).

Answer 7

So I multiply them or what...? @Easyaspi314

Answer 8

I = prt (which means I = p times r times t)

12000 = 8,000(r)(15)

Agree? I just substituted. Now you solve this equation for r.

Answer 9

@Easyaspi314 Is it 10%?

Answer 10

yes

Answer 11

k :D ty

Answer 12

welcome.