Question

Jasmine wants to earn $2,000 in simple interest through a

bank account earning 5% annually. How much principal
would she need to invest in the account to meet her interest
goal in 4 years?

Answer 1

$10000

Explanation:

First, converting R percent to r a decimal

r = R/100 = 5%/100 = 0.05 per year,

then, solving our equation

P = 2000 / ( 0.05 × 4 ) = 10000

P = $ 10,000.00

The principal required to

accumulate interest of $ 2,000.00

on a rate of 5% per year for 4 years is $ 10,000.00.