you begin planning for a down payment on a home. you have $32,000 to invest, and you want to buy a home in 5 years. you need to earn another $18,000 in interest to meet your down payment goal.

what simple interest rate do you need to meet your goal?

a.) 15.15%
b.) 35.56%
c.) 11.25%
d.) 5.62%

Question

you begin planning for a down payment on a home. you have $32,000 to invest, and you want to buy a home in 5 years. you need to earn another $18,000 in interest to meet your down payment goal.

what simple interest rate do you need to meet your goal?

a.) 15.15%
b.) 35.56%
c.) 11.25%
d.) 5.62%

Accepted Answer

{ "quality": "clear", "question_count": 1, "skills_matched": [ "step_cot", "multiple_choice_formatter", "explain_then_answer", "quick" ], "needs_drawing": false, "concepts_used": [], "new_concepts": [ "Simple Interest Formula" ], "current_concepts": [ "Simple Interest Formula", "Financial Word Problems" ] } ## Identify given values and formula $$ \begin{aligned} P &= 32000 \ I &= 18000 \ t &= 5 \ I &= P \cdot r \cdot t \end{aligned} $$ ## Solve for the interest rate $$ \begin{aligned} 18000 &= 32000 \cdot r \cdot 5 \ 18000 &= 160000 \cdot r \ r &= \frac{18000}{160000} = 0.1125 \end{aligned} $$ ## Convert to percentage $$ r = 11.25\% $$

a.) 15.15%

b.) 35.56%

c.) 11.25%

d.) 5.62%

{ "subject": "Mathematics", "question_type": "Multiple Choice", "knowledge_point": [ "Mathematics", "Algebra", "Simple Interest Formula" ] }

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QUESTION IMAGE

Question

Explanation:

Identify given values and formula

Solve for the interest rate

Convert to percentage

Answer: