Question

nate has an account that pays 2.76% simple interest per year and wants to accumulate $3,090 in interest from it over the next 15 years. how much money should nate invest in this account to meet his goal?

Answer 1

Given:
interest rate = 2.76%
simple interest = 3,090
term = 15 years

Looking for the principal.

Simple Interest = Principal * interest rate * term
3,090 = Principal * .0276 * 15
3,090 = Principal * 0.414
3,090 / 0.414  = Principal
7,463.77 = Principal

Nate should invest 7,463.77 to meet his goal.