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Suppose Johnny invests $41,745 into an account, which has been earning interest for many years and he now has a total of $39,974. In two or more sentences explain why a negative number would/wouldn’t be reasonable in the solution of the rate of the investment.

Respuesta :

madhattedlady
A negative number wouldn't be reasonable in investments because when you invest you are adding money to something. If you invest you aren't removing anything so there can't be negative numbers.
aachen

Answer:

A negative number wouldn’t be reasonable in the solution of the rate of the investment.

Step-by-step explanation:

Suppose Johnny invests $41,745 into an account, which has been earning interest for many years. The simple interest formula is:-

Simple Interest = $41745 x Rate x Time

We know Rate > 0 and Time > 0. It means Simple interest > 0.

So the interest part could not be negative.

Given that he now has a total of $39,974. So the interest part = $39,974 - $41,745 = -$1,771. It means he got the negative interest which is not reasonable.

Hence, a negative number wouldn’t be reasonable in the solution of the rate of the investment.

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