SOLUTION: Determine the present value P you must invest to have the future value A at simple interest rate r after time t.
A = $19,000, r = $6.5%, t = 4 years
The pre
Question 1176671: Determine the present value P you must invest to have the future value A at simple interest rate r after time t.
A = $19,000, r = $6.5%, t = 4 years
The present value that must be invested to get $19,000 after 4 years at an interest rate of 6.5% is $__. (Round up to the nearest cent.) Found 2 solutions by ewatrrr, ikleyn:Answer by ewatrrr(24785) (Show Source): You can put this solution on YOUR website!
Hi
Yes! Use Simple Interest Formula:
A = P(1 + rt)
= $15,079.37 (rounded up to nearest cent)
Wish You the Best in your Studies.
Answer by ikleyn(52781) (Show Source): You can put this solution on YOUR website! .
Determine the present value P you must invest to have the future value A at simple interest rate r after time t.
A = $19,000, r = $6.5%, t = 4 years
The present value that must be invested to get $19,000 after 4 years at an interest rate of 6.5% is $__.
(Round up to the nearest cent.)
~~~~~~~~~~~~~~~~~~~~~~~~~~~~
@ewatrrr solved the problem INCORRECTLY.
She mistakenly used the formula for the compound account,
although the problem asked to find the solution for a simple interest.
I came to bring a correct solution.
A = P*(1+r*t)
19000 = P*(1 + 0.065*4)
9000 = P*1.26
P = = 15079.37 dollars. ANSWER
Solved.
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To see many other similar and/or different solved problems on simple interest accounts, look into the lesson
- Simple interest percentage problems
in this site.