Ramon has $4,200 to invest for college.
b) Ramon's goal is to have $5,000 after 4 years. Is this possible if he invests with a return rate of 6%?

Question

Ramon has $4,200 to invest for college.
b) Ramon's goal is to have $5,000 after 4 years. Is this possible if he invests with a return rate of 6%?

calculusxy · Answer

@perl

calculusxy · Answer

I have no idea of how to approach this problem.

calculusxy · Answer

@perl

perl · Answer

I think we can use the formula
Balance = P( 1 + r*t)

calculusxy · Answer

Ok

perl · Answer

His goal is to get $5,000 after 4 years. Is this possible if he invests with a return rate of 6%?
We can plug this into the equation
B = P ( 1 + r * t ) 
where
B = future balance
P = principal
r = rate of return
t = # years 

This gives us:

5000 = P*( 1 + 6/100 * 4 )

calculusxy · Answer

I figured that p= 20833.33

calculusxy · Answer

So it is possible?

perl · Answer

oh wait there is missing information

calculusxy · Answer

So this is the whole problem:
a. If Ramon invests $4,200 for 3 years and earns $630, what was the simple interest rate? 
b. (...)

calculusxy · Answer

Yes

perl · Answer

ok he invested 4200, that will be the principal

perl · Answer

4200*( 1 + 6/100 * 4 ) = amount at end of 4 years

calculusxy · Answer

1008

perl · Answer

that should equal to 5208

perl · Answer

here https://www.google.com/search?q=4200*%28+1+%2B+6%2F100+*+4+%29&ie=utf-8&oe=utf-8

calculusxy · Answer

Okay.  Thank you so much

perl · Answer

so now you can answer your question