Question

The cost of attendance at State College is $19,500 for the first year. Devise a periodic savings plan that will allow you to make small deposits for 5 years at a simple interest rate of 1.5% and save enough to pay for the first year at the college.
I only want verified answers
pls dont answer if you dont know or you are not an expert

Answer 1

Simple interest rate for one year = 1.5%
simple interest rate over 5 years = 1.5 x 5 = 7.5%

100% + 7.5% = 107.5%
107.5% = $19500
1% = 181.3953
100% = $18140.50

He needs to put in $18140.50 so that he can get $19,500 at the end of 5 years.