Answer :
$14,100 * 8 * i = $4,000
$112,800 * i = $4,000
i = $4,000 / $112,800
i = 0.0355
i = 3.55%
answer is b. 3.55%
$112,800 * i = $4,000
i = $4,000 / $112,800
i = 0.0355
i = 3.55%
answer is b. 3.55%
Answer
Find out the what is the minimum simple interest rate Maggie needs to reach her goal .
To proof
Formula
[tex]Simple\ interest = \frac{principle\times rate\times time}{100}[/tex]
As given
Maggie has $14,100 to invest, and wishes to gain $4,000 in interest over the next eight years.
put all the values in the formula
[tex]4000 = \frac{14100\times rate\times 8}{100}[/tex]
Solving
[tex]rate = \frac{4000\times 100}{14100\times8}[/tex]
solving the above
[tex]rate = \frac{400000}{112800}[/tex]
rate =3.55% (approx)
the minimum simple interest rate Maggie needs to reach her goal is 3.55% .
Option (b) is correct .
Hence proved