At what rate would you need to invest $12000 and make $4800 in interest after 8 years?
HINT: Use the answer choices to figure out which interest rate would be for simple interest!
At what rate would you need to invest $12000 and make $4800 in interest after 8 years?
HINT: Use the answer choices to figure out which interest rate would be for simple interest!
1%
4%
5%
2%
To calculate the rate at which you need to invest $12000 and make $4800 in interest after 8 years, you can use the formula for interest:
Interest = Principal x Rate x Time
Interest = $4800
Principal = $12000
Time = 8 years
Therefore, Rate = Interest / (Principal x Time)
Rate = $4800 / ($12000 x 8)
Rate = $4800 / $96000
Rate = 0.05 or 5%
Therefore, you would need to invest at an interest rate of 5% in order to make $4800 in interest after 8 years with a principal of $12000.