Question

Maggie has $14,100 to invest, and wishes to gain $4,000 in interest over the next eight years. Approximately what is the minimum simple interest rate Maggie needs to reach her goalWhy is simple interest useful for planning parts of your financial future?

Answer 1

14100/4000 = 3.525(percent of the total amount she wants compared to planned gain) 3.525/8(years) = .440625... so around 4.4 percent interest for 8 years. As for the second question, I’d assume not to go bankrupt. Hehe. If I’m wrong about the first question please forgive me as it’s my first try attempting such a question.