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ron estimates it will cost him $600,000 to send his daughter to a private college in 18 years. he currently has $130,000 to deposit in an account. what simple interest rate must his account have to reach a balance of $600,000 in 18 years? round to the nearest percent​

Respuesta :

Answer:

20.1 %

Step-by-step explanation:

Interest= 600,000 - 130,000 = 470, 000

Initial Value = 130,000

Time = 18

Rate = Interest ÷ (Initial Value × Time) × 100

Rate = (470,000 ÷ (130,000 × 18)) ×100

Rate = (470,000 ÷ 2,340,000 )× 100

Rate = (470,000 ÷ 2,340,000) × 100

Rate = 0.200855 × 100

Rate = 20.0855%

To the nearest percent = 20.1%