In This World - Problem of the Day

CNN News Clip

There is $7 billion unclaimed in treasuries across the UnitedStates. Do you have an unclaimed asset? Jerry has just received an inheritance of $25,000, and he would like to use it to help with his retirement. Since Jerry is 25 years old, he figures that the $25,000 can be invested for 40 years before he will need to use it for retirement. If he would like to have a monthly income of $5,000, how much money will he need to have in his retirement account to provide this income from interest only? He also wants to know what interest rate would be necessary for the $25,000 to grow to this amount.

Both of Jerry's questions are answered by working with the simple interest formula introduced in this section. Jerry will also see how to find the principal, the rate, and the time, given the other components of the interest formula. In this section, we also introduce video clips taken from CNN.com. Indeed, mathematics is everywhere IN THIS WORLD!