Joshua has $4,200 to invest for college. If Joshua invests $4,200 for 3 years and earns $630, what is the simple interest rate? Joshua's goal is to have $5,000 after 4 years. Is this possible if he invests with a rate of return of 6%? Explain.

Question

Sampson

Mathematics

9 April, 07:23

Joshua has $4,200 to invest for college. If Joshua invests $4,200 for 3 years and earns $630, what is the simple interest rate? Joshua's goal is to have $5,000 after 4 years. Is this possible if he invests with a rate of return of 6%? Explain.

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Answers (1)

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Zion Golden · Answer 1

Answer: Yes it's possible for Joshua to meet his goal of having $5,000 after 4 years.

Step-by-step explanation:

From the question, Joshua has $4,200 to invest for college which he invests $4,200 for 3 years and earns $630.

Interest = (Principal * Rate * Time) / 100

630 = (4200 * R * 3) / 100

630 = 12600R/100

12600R = 630 * 100

12600R = 63000

Interest rate = 63000/12600 = 5%

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

Interest = (Principal * Rate * Time) / 100

Interest = (4200 * 6 * 4) / 100

= 100800/100

= $1008

At the end of 4 years, Joshua will have:

= $4200 + $1008

= $5208

Yes it's possible.