Question

You want to accumulate $60,000 for a down payment on a small business.

a) Calculate the interest rate
b) Determine the time required
c) Assess potential business profits
d) Identify investment opportunities

Answer 1

To calculate the interest rate needed to accumulate $60,000 for a down payment on a small business, you need to know the time frame and any additional contributions made. In this case, the information provided is insufficient to calculate the interest rate.

Step-by-step explanation:

To calculate the interest rate needed to accumulate $60,000 for a down payment on a small business, you need to know the time frame and any additional contributions made. Let's assume you have a time frame of 5 years and don't plan to make any additional contributions. To find the interest rate, you can use the formula:

Interest rate = (Future value - Present value) / (Present value x Time)

Plugging in the values, we have:

Interest rate = ($60,000 - $0) / ($0 x 5)

Simplifying:

Interest rate = $60,000 / $0

Since you can't divide by zero, we can't calculate the interest rate with the given information.