Question

Maggie has $14,100 to invest, and wishes to gain $4,000 in interest over the next eight years. Approximately what is the minimum simple interest rate Maggie needs to reach her goal?

Answer 1

Answer:40001

Explanation:

Answer 2

Given:
Principal: 14,100
Interest:4,000
term: 8 years
rate: ?

We'll use the simple interest rate formula to get the interest rate needed.

Simple Interest = Principal * Interest Rate * Term
4,000 = 14,100 * Interest rate * 8 years
4,000 = 112,800 * Interest rate
4,000 / 112,800 = Interest rate
0.03546 = Interest rate

0.03546 * 100% = 3.546% or 3.55% is the interest rate needed.

S.I = 14,100 * 0.0355 * 8
S.I = 500.55 * 8
S.I = 4,004.40