Respuesta :
The simple interest rate need by Teri will be 4%.
Step-by-step explanation:
Given:
Teri has $125,000 to deposit in his accounts so that he gets $200,000 in 16 years along with the simple interest.
To find:
The simple interest rate needed to grow $125,000 into $200,000 in 16 years.
Solution:
The principle amount Teri has = P = $125,000
The total amount Teri wants to have in 16 years = A = $200,000
The simple interest that will Teri earn = S.I
[tex]S.I= A - P =\$200,000-$125,000=\$ 75,000[/tex]
The rate of interest per year = R
The time for which money is deposited = T = 16 years
The simple interest is calculated by the formula:
[tex]S.I=\frac{P\times R\times T}{100}\\\$75,000=\frac{\$125,000\times R\times 16}{100}\\R=\frac{$75,000\times 100}{$125,000\times 16}=3.75\% \approx 4\%[/tex]
The simple interest rate need by Teri will be 4%.
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Simple interest rate (R) is 3.75%
Given:
Amount deposit as saving (P) = $125,000
Number of year (n) = 16 year
Amount needed (A) = $200,000
Find:
Simple interest rate (R)
Computation:
Amount of interest (I) = A - P
Amount of interest (I) = 200,000 - 125,000
Amount of interest (I) = 75,000
So,
I = (P)(R)(T)
75,000 = (125,000)(R)(16)
75,000 = 2,000,000(R)
R = 75,000 / 2,000,000
R = 0.0375
Simple interest rate (R) = 3.75%
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