A Company Is Setting Aside $21,354 Today, and Wishes to Have

question 63

Short Answer

A company is setting aside $21,354 today, and wishes to have $30,000 at the end of three years for a down payment on a piece of property. What interest rate must the company earn?

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Definitions:

Denominator

The bottom part of a fraction that tells into how many equal parts the whole is divided.

Simplify

To simplify a mathematical expression to its most basic form.

Expression

A mathematical phrase that can include numbers, variables, and operation symbols but does not have an equality sign.

Rationalize

The process of eliminating radicals from the denominator of a fraction or complex numbers from the denominator.