Answer: Yes it's possible for Joshua to meet his goal of having $5,000 after 4 years.
Explanation:
From the question, Joshua has $4,200 to invest for college which he invests $4,200 for 3 years and earns $630.
Interest = (Principal × Rate × Time)/100
630 = (4200 × R × 3)/100
630 = 12600R/100
12600R = 630 × 100
12600R = 63000
Interest rate =63000/12600 = 5%
Joshua's goal is to have $5,000 after 4 years. Is this possible if he invests with a rate of return of 6%?
Interest = (Principal × Rate × Time)/100
Interest = (4200 × 6 × 4)/100
= 100800/100
= $1008
At the end of 4 years, Joshua will have:
= $4200 + $1008
= $5208
Yes it's possible.