Question

How much money would you need to put in the bank if you get a simple interest rate of

5% for 4 years, and you want to make at least $500 in interest? Round to the nearest whole dollar
amount (be sure to put the $ in your answer)

Answer 1

Here,
Time: 4 years
Rate: 5%
Simple interest:500$
So, principal:?
We know,
SI=P*T*R/100
500=P*4*5/100
500=20P/100
20P=50000
P=50000/20
P=2500$
So 2500$ is needed to make atleast 500$ interest in 4 years with 5% rate