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26 December, 13:33

Nate has an account that pays 2.76% simple interest per year and wants to accumulate $3,090 in interest from it over the next 15 years. how much money should nate invest in this account to meet his goal?

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  1. 26 December, 13:41
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    Given:

    interest rate = 2.76%

    simple interest = 3,090

    term = 15 years

    Looking for the principal.

    Simple Interest = Principal * interest rate * term

    3,090 = Principal *.0276 * 15

    3,090 = Principal * 0.414

    3,090 / 0.414 = Principal

    7,463.77 = Principal

    Nate should invest 7,463.77 to meet his goal.
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