Interest Rate

[shinigamikey]

Fernando wants to start an annual scholarship program. He wants to have three five thousand dollar scholarships and one ten thousand dollar scholarship per year. The bank is offering Certificates of Deposits with an annual simple interest rate of %4 per year. How much money would Fernando need to invest in CD's to be able to pay for the scholarships with interest earned each year?

 

[stapel]

Fernando wants to start an annual scholarship program. He wants to have three five thousand dollar scholarships and one ten thousand dollar scholarship per year. The bank is offering Certificates of Deposits with an annual simple interest rate of %4 per year. How much money would Fernando need to invest in CD's to be able to pay for the scholarships with interest earned each year?

How much interest-income will he need?

What variable are you using for the (unknown) amount of principal?

What is the simple-interest formula?

Given the principal's variable, the interest rate, the interest amount, the time (being one year), and the formula they gave you, what do you get when you solve the formula for the variable?

 

[mmm4444bot]

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