Something about how money grows over time

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Julie needs to pay a $5,000 tuition bill nine months from now. She has some money saved up that she could invest, but she is also considering a trip to Europe. She remembers reading something about how money grows over time, and she wonders if maybe she should just go ahead and invest some money today to pay the tuition bill.

Assuming Julie goes to Europe and waits six months to do her investing, how much would she need to invest then, again assuming a 10% annual rate and using the simple interest formula?

Reference no: EM131012176

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