Question

Question 3
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?
0 / 1 point
$24,556.53
$30,056.63
$28,046
$20,000.85
Incorrect

Answer 1

Cᴏʀʀᴇᴄᴛ 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,

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

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

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

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

▪️For the second year,

• P = 44000

• T = 1 year

• R = 10℅