Question

Ceasar wants to save up his money to buy a house. He currently has $32,000 in his savings account and wants to have $275,000. What simple interest rate would he need so that $32,00 grows to $270,000 in 10 years

Answer 1

75.9375%

Explanation:

We apply the simple interest formula;

we first determine the amount of accrued interest to be earned;

interest = 275000 - 32000

= 243000

Applying the simple interest formula;

`I=(P*R*T)/(100)\\243000=(32000*R*10)/(100)\\ 243000=3200R\\R=75.9375`