SOLUTION: mr wasike wants to invest a certain portion of his lump sum retirement benefits in order to accumulate 300000 shillings in five years.How much should he invest if the money will ea

Question 1075581: mr wasike wants to invest a certain portion of his lump sum retirement benefits in order to accumulate 300000 shillings in five years.How much should he invest if the money will earn 13% per annum?Homw much interest will be earned over 5years
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
mr wasike wants to invest a certain portion of his lump sum retirement benefits in order to accumulate 300000 shillings in five years.How much should he invest if the money will earn 13% per annum?Homw much interest will be earned over 5years
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Assuming simple interest,
A(t) = P(1+rt)
300000 = P(1+0.13*5)
P = 300000/(1.65)
P = 181818.81 (amt to invest)
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300,000-181818.81 = 118181.82 (amt of interest)
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Cheers,
Stan H.
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