Asked by Annet Jamrych on May 21, 2024
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Alesha wants to deposit $25,000 into an account that compounds interest.She hopes to have $40,000 in 7 years for a down payment on a house.What interest rate must she find in order to accomplish her goal? Round your answer to the nearest hundredth of a percent.
Compounds Interest
Interest on a loan or deposit calculated based on both the initial principal and the accumulated interest from previous periods.
Interest Rate
The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.
Down Payment
An initial payment made when something is bought on credit, representing a portion of the purchase price.
- Implement mathematical models for evaluating the future value of investments.
- Determine the necessary initial investment to achieve a preset financial objective within a designated period.
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Learning Objectives
- Implement mathematical models for evaluating the future value of investments.
- Determine the necessary initial investment to achieve a preset financial objective within a designated period.
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