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5 December, 16:58

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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  1. 5 December, 19:43
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    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.
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