Question

Betsy Parker wants to buy a house in next 10 years and decides to have a SMART goal of having $40,000 as down payment. With the investment that gives interest rate of 5%, how much money she needs to set aside now?

Answer 1

Answer:

P=40,000

T=10years

R=5%

For the 1st year,

Si=p*r*t/100

=40000*10*1/100

=Rs. 4000

Amount=40000+4000=44000

For the 2nd year,

P=44000

T=1 year

R=10%

Explanation:

You have to do like this

After 1 year your principle will increases. The amount of every year will be your principle. After completing 10 years you have to do the compound interest that is (INITIAL PRINCIPLE - FINAL AMOUNT) your answer will came out.

Answer 2

Explanation:

Qᴜᴇsᴛɪᴏɴ :-

Betsy Parker wants to buy a house in next 10 years and decides to have a SMART goal of having $40,000 as down payment. With the investment that gives interest rate of 5%, how much money she needs to set aside now?

Gɪᴠᴇɴ :-

P = 40,000

T = 10 years.

R = 5%

Tᴏ Fɪɴᴅ :-

How much money she needs to set aside noᴡ.

Sᴏʟᴜᴛɪᴏɴ :-

▪️For the first year,

$\sf\large\blue{SI = \frac{P \times R \times T}{100} }SI=$

100

P×R×T

$\sf\large\blue{SI = \frac{40000\times 10 \times 1}{100} }SI= 100$

40000×10×1

$\sf\large\blue{SI = Rs.4000 }$SI=Rs.4000

$\sf\large\blue{Amount = 40000 + 4000 = 44000 }Amount=40000+4000=44000$

▪️For the second year,

P = 44000

T = 1 year

R = 10℅