SOLUTION: Alejandro has determined he needs to have $500,000 for retirement in 35 years. His account earns 6% interest. How much total interest will Alejandro earn?

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Question 1066297: Alejandro has determined he needs to have $500,000 for retirement in 35 years. His account earns 6% interest. How much total interest will Alejandro earn?
Answer by josmiceli(19441) About Me  (Show Source):
You can put this solution on YOUR website!
Simple interest
+A+=+P%2A%28+1+%2B+r%2At+%29+
+500000+=+P%2A%28+1+%2B+.06%2A35+%29+
+500000+=+P%2A3.1+
+P+=+500000+%2F+3.1+
+P+=+161290.32+
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The formula for interest earned is:
+I+=+P%2Ar%2At+
+I+=+161290.32%2A.06%2A35+
+I+=+338709.68+
$338,709.68 is the interest earned
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check:
+P+%2B+I+=+161%2C290.32+%2B+338709.68+
+P+%2B+I+=+499999.99+
round this off -OK