Joshua wants to have $1,000 in 8 years. He has $750 that he can use for his initial deposit. What simple annual interest rate would he need in order to have the amount that he wants to have in 8 years? Round your answer to the nearest hundredth of a percent.

Question

mathstudent55 · Answer

@mjperez18

mathstudent55 · Answer

Ok. Let's start. If he has now $750 and he wants to end up with $1000 by adding interest, how much money must he earn in interest?

anonymous · Answer

950

kendricklamar2014 · Answer

Nope he needs 250 to get from $750 ~ $1,000

anonymous · Answer

okay

mathstudent55 · Answer

If you have $750 and you need $1000, how much do you need to add to $750 to end up with $1000?

anonymous · Answer

250

mathstudent55 · Answer

All you need is to add $250,  since $1000 - $750 = $250.

kendricklamar2014 · Answer

Exactly ^

mathstudent55 · Answer

Ok,. Great.

mathstudent55 · Answer

That means we need to use $750 earning interest to earn $250 in interest to end up with $1000 altogether.

anonymous · Answer

? I am confused

anonymous · Answer

sorry, I need your help and I am not saying dont help me but this is taking too long. I only have 20 minutes or less and still have 15 questions to answer

kendricklamar2014 · Answer

To get 1,000 after 8 years, you need to first find a percent and multiply * 8 and see if it works

mathstudent55 · Answer

There is a formula for simple interest.
Here is the formula:

$ I = Prt$

where I = the interest earned
P = the principal amount invested
r = interest rate
t = time in years

anonymous · Answer

I dont get this stuff that is why I am asking you guys so please

mathstudent55 · Answer

The interest here is $250
Let's use the formula where the only unknown is the interest rate.

250 = 750 * r * 8
250 = 6000r
6000r = 250
r = 0.0416666...
Now we write the rate as a percent, so 0.401666... = 4.166666...%
The rate is 4.17%

mathstudent55 · Answer

Sorry, but gtg

anonymous · Answer

thank you