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Math Help - Investment rate

  1. #1
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    Investment rate

    Karl wants to buy a $800 TV in 21 months. How much should he invest now at 20% simple interest to have the money in 21 months?
    Investment = $

    whatis the necessary equation?

    thx
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  2. #2
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    Quote Originally Posted by makaveli89 View Post
    Karl wants to buy a $800 TV in 21 months. How much should he invest now at 20% simple interest to have the money in 21 months?
    Investment = $

    whatis the necessary equation?

    thx
    Interest= (Principal x %Rate per year x Time)/100
    Here principal is the amount invested
    If your time is in months divide it by 12
    Principal + interest = amount ($800)
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  3. #3
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    i don't get it. can u please go more into detail.

    i tried as equation: 1.2x^1.75 = 800

    but it doesnt work, i guess its wrong.
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  4. #4
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    Smile I think this might be helpful.........

    Quote Originally Posted by makaveli89 View Post
    Karl wants to buy a $800 TV in 21 months. How much should he invest now at 20% simple interest to have the money in 21 months?
    Investment =?
    800=Investment+Interest


    Interest=\frac{Investment*21*20}{12*100}
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  5. #5
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    i dont know if this makes sense. i have no clue how to solve this
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  6. #6
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    1-"Money" has to be invested in the bank to get a profit at the rate of 20% annually this "Money " is called investment and the profit is called interest and the value that you need to get is amount (800$)

    2- according to your question you need to get 800$ after 21 months at the rate of interest (20% per annum)

    3-The formula used here is


    Interest=\frac{Investment*Months*\text {Rate of interest}}{12*100}

    Amount= Investment+Interest

    Now which point you dont get? or is it the fourth option

    4)All of these
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  7. #7
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    what is the final equation?

    this one


    which is, 20 = 21*0.2*x / 12*100

    ????
    is that correct because i think its wrong cause the result is not correct.
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