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Artist 52 [7]
3 years ago
14

Sara wants to have $600,000 in her savings account when she retires. How much must she put in the account now, if the account pa

ys a fixed interest rate of 8%, to ensure that she has $600,000 in 20 years?
Business
1 answer:
Leona [35]3 years ago
5 0

Answer:

Total value attained in 20 years = Simple interest of 20 years on the Principal amount + Principal amount invested

<em>Simple interest = Principal amount invested * Interest rate * Time Period</em>

Simple interest earned during 20 years =  X * 0.08 i.e. 8% * 20 ( Assume principal invested as <em>X)</em>

= 1.6 X

Hence,

$ 600,000 = 1.6 X + X

2.6 X = 600,000

X = 600,000 / 2.6  

= $ 230,769 (Approx.)

<em>Hence, amount Sara should put in the Savings Accounts now =  $ 230,769 (Approx.)</em>

<em></em>

Explanation:

Refer to the answer.

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Interview

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4 years ago
Which of the following statements would most likely be included in a procedure?
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Answer:

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3 years ago
the time period during which production processes increase volume in order to meet customer demands while coping with quality pr
lutik1710 [3]

The time period during which production processes increase volume in order to meet customer demands while coping with quality problems and​ last-minute design changes is called ​ramp-up.

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4 years ago
A Stove Can be bought on hire purchase by making a deposit of $750
KiRa [710]

Answer:

$3,525.00

Explanation:

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