Ask Question
4 July, 19:30

A student has a savings account earning 9% simple interest. She must pay $1400 for first-semester tuition by September 1 and $1400 for second-semester tuition by January 1. How much must she earn in the summer (by September 1) to pay the first-semester bill on time and still have the remainder of her summer earnings grow to $1400 between September 1 and January 1? (Round your answer to the nearest cent.)

+3
Answers (1)
  1. 4 July, 19:46
    0
    Answer: The answer is $2,759.22

    Explanation: From the question above, we have:

    September 1st to January 1st is 4 months, this is 1/3 of a year which means that the student will earn:

    => 9/3 = 3%

    3% interest for the money that is saved is the savings account. So the student must put in at least:

    x + 3%x = 1400

    x + 0.03x = 1400

    1.03x = 1400

    x = 1400 / 1.03

    x = 1,359.22

    Therefore, if the student saves $1,359.22 in the savings account By September 1st, she will have $1400 by January 1st.

    Also, the student needs to make $1400 for the first semester. So overall she will need to make:

    1,400 + 1,359.22 = $2,759.22 during the summer in order to ensure that she will have enough money to pay for both semesters.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “A student has a savings account earning 9% simple interest. She must pay $1400 for first-semester tuition by September 1 and $1400 for ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers