Question

Nate has an account that pays 2.76% simple interest per year and wants to accumulate $3,090 in interest from it over the next 15 years. How much money should Nate invest in this account to meet this goal?

a
$4,369.26
b
$4,373.77
c
$1,279.26
d
$7,463.77

Answer 1

To achieve this goal, he must invest $7,463.77 ( d)

Explanation:

mathematically;

simple interest = PRT/100

I = 3,090

P = ?

R = 2.76%

T = 15 years

3,090 = P * 2.76 * 15/100

100 * 3090 = 41.4 P

P = 309000/41.4

P = 7,463.77