Math Problem Statement
imple interest is given by the formula
A
P
+
P
r
t
. Where
A
is the balance of the account after
t
years, and
P
is the starting principal invested at an annual percentage rate of
r
, expressed as a decimal.
Colby is investing money into a savings account that pays 4% simple interest, and plans to leave it there for 15 years. Determine what Colby needs to deposit now in order to have a balance of $30,000 in his savings account after 15 years.
Colby will have to invest $ now in order to have a balance of $30,000 in his savings account after 15 years. Round your answer to the nearest dollar.
Solution
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Math Problem Analysis
Mathematical Concepts
Simple Interest
Algebra
Formulas
A = P + P * r * t
P = A / (1 + r * t)
Theorems
-
Suitable Grade Level
Grades 9-12
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