Question

At what rate would you need to invest $12000 and make $2880 after 8 years?

Answer 1

Answer:

$3\%$

Step-by-step explanation:

we know that

The simple interest formula is equal to

$I=P(rt)$

where

I is the Final Interest Value

P is the Principal amount of money to be invested

r is the rate of interest  

t is Number of Time Periods

in this problem we have

$t=8\ years\\ P=\ 12,000\\I=\ 2,880\\r=?$

substitute in the formula above

$2,880=12,000(8r)$

Solve for t

$2,880=96,000(r)$

$r=2,880/96,000$

$r=0.03$

Convert to percent form

$0.03*100=3\%$