Ron estimates that it will cost $400,000 to send his daughter to a private college in

18 years. He currently has $90,000 to deposit in an account. What simple interest

rate must his account have to reach a balance of $400,000 in 18 years? Round to

the nearest percent.

Question

Mathematics

Cory Morrison

9 March, 11:37

Ron estimates that it will cost $400,000 to send his daughter to a private college in

18 years. He currently has $90,000 to deposit in an account. What simple interest

rate must his account have to reach a balance of $400,000 in 18 years? Round to

the nearest percent.

+3

Answers (1)

Know the Answer?

Sophie Townsend · Answer 1

Answer: simple interest rate is 19%

Step-by-step explanation:

The formula for determining simple interest is expressed as

I = PRT/100

Where

I represents interest paid on the amount invested.

P represents the principal or amount invested.

R represents interest rate

T represents the duration of the investment in years.

From the information given,

P = 90000

I = 400000 - 90000 = $310000

T = 18 years

Therefore,

310000 = (90000 * R * 18) / 100

310000 = 16200R

R = 310000/16200

R = 19%

Ron estimates that it will cost $400,000 to send his daughter to a private college in18 years. He currently has $90,000 to deposit in an account. What simple interestrate must his account have to reach a balance of $400,000 in 18 years? Round tothe nearest percent.

Ron estimates that it will cost $400,000 to send his daughter to a private college in

18 years. He currently has $90,000 to deposit in an account. What simple interest

rate must his account have to reach a balance of $400,000 in 18 years? Round to

the nearest percent.