Question

Reggie and Jennifer want to buy the condo they are currently renting. They have some money in a savings account, but the condo costs twice that much. If the account earns 7

Answer 1

To buy the condo, Reggie and Jennifer need to have twice the amount of money in their savings account. The account earns 7% interest, but they still have a deficit and need to save more money.

Step-by-step explanation:

In order to buy the condo, Reggie and Jennifer need to have twice the amount of money in their savings account. Let's say they have x amount of money in the account. According to the given information, the condo costs twice that amount, which means it costs 2x.

The account earns 7% interest. After a year, the amount of money in the account would increase by 7% of x, which is 0.07x.

So, after one year, the total amount of money in the account would be x + 0.07x = 1.07x. However, the condo costs 2x, so they would still have a deficit of 2x - 1.07x = 0.93x. They need to save more money to afford the condo.