Question

Simple Interest Application Simple interest is given by the formula A = P + Prt. Where A is the balance of the account after t years, and P is the starting principal invested at an annual percentage rate of r, expressed as a decimal. Keegan is investing money into a savings account that pays 4% simple interest, and plans to leave it there for 20 years. Determine what Keegan needs to deposit now in order to have a balance of $50,000 in his savings account after 20 years. Keegan will have to invest $ now in order to have a balance of $50,000 in his savings account after 20 years. Round your answer to the nearest dollar.

Simple interest is given by the formula A=P+PrtA=P+Prt. Where AA is the balance of the account after tt years, and PP is the starting principal invested at an annual percentage rate of rr, expressed as a decimal.

Keegan is investing money into a savings account that pays 4% simple interest, and plans to leave it there for 20 years. Determine what Keegan needs to deposit now in order to have a balance of $50,000 in his savings account after 20 years.

Keegan will have to invest $ now in order to have a balance of $50,000 in his savings account after 20 years. Round your answer to the nearest dollar.

Answer 1

tthanks

Accanding to ling to given question. A = $50,000 let "P" amount be deposit by Keegan A P+ Pot where ga 4 %. 50,000 - Pot D x 4 x20 t=20 vo Jean 50,000 = P +0.8P 50,000 = 1.8 p. po 50,000 - $ 27, 778 1.8. This keegan need to depasit $27, 118 in nis saving account in order to get $50,000 at end of 20 year at a 4%, in 20 year Keegan simple instearst of a 27,718 X 4x20 $ 22222:22 res 100