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

Question

Leandro Wang

Mathematics

28 February, 02:53

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

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Heather Simpson · Answer 1

Pablo has $4,200 to invest for college. Pablo's goal is to have $5,000 after 4 years. Question: Is this possible if he invests with a rate of return of 6%? We'll we are not sure with the answer unless we solve it. So let's start solving.=> 6% = 6% / 100% = 0.06Now, we have the value of 6% that will be multiplied with the amount to identify his annual interest rate:=> $4,200 * 0.06 = 252 dollars is his annual interest rateLet's multiply this for 4 years=> 252 dollars * 4 = 1008 dollarsThen, let's sum up: = > $4,200 + 1008 dollars = 5 208 dollars.