If Pablo invests $4200 for 3 years and earns $630, what is the simple interest rate? Pablo's goal is to have $5000 after 4 years. Is it possible with a rate of 6%? Explain.

Question

Mathematics

Jordin Horton

26 June, 19:34

If Pablo invests $4200 for 3 years and earns $630, what is the simple interest rate? Pablo's goal is to have $5000 after 4 years. Is it possible with a rate of 6%? Explain.

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Answers (1)

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David Giles · Answer 1

If Pablo invests 4200 for three years then the interest rate would be about 3.4%. Yes it is possible for Pablo to get to $5,000 after four years with a rate of 6%.

Step-by-step explanation:

If A = P (1 + rt) you enter in the numbers given A = 4200 (1 + (0.06 x 4)) it will equal 5,208. The total amount accrued, principal plus interest, from simple interest on a principal of $4,200.00 at a rate of 6% per year for 4 years is $5,208.00.