Question

Suppose Johnny invests $41,745 into an account, which has been earning interest for many years and he now has a total of $39,974. In two or more sentences explain why a negative number would/wouldn’t be reasonable in the solution of the rate of the investment.

Answer 1

Answer:

A negative number wouldn’t be reasonable in the solution of the rate of the investment.

Step-by-step explanation:

Suppose Johnny invests $41,745 into an account, which has been earning interest for many years. The simple interest formula is:-

Simple Interest = $41745 x Rate x Time

We know Rate > 0 and Time > 0. It means Simple interest > 0.

So the interest part could not be negative.

Given that he now has a total of $39,974. So the interest part = $39,974 - $41,745 = -$1,771. It means he got the negative interest which is not reasonable.

Hence, a negative number wouldn’t be reasonable in the solution of the rate of the investment.

Answer 2

A negative number wouldn't be reasonable in investments because when you invest you are adding money to something. If you invest you aren't removing anything so there can't be negative numbers.