SOLUTION: Determine the present value P you must invest to have the future value A at simple interest rate r after time t.
A = $9000.00, r = $10.5%, t = 6 months
$__
Question 1176672: Determine the present value P you must invest to have the future value A at simple interest rate r after time t.
A = $9000.00, r = $10.5%, t = 6 months
$__ (Round up to the nearest cent as needed.) 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)
= $8,551.07(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 = $9000.00, r = $10.5%, t = 6 months
$__ (Round up to the nearest cent as needed.)
~~~~~~~~~~~~~~~~~~~~~~~~~~~~
@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)
9000 = P*(1 + 0.105*0.5) (0.5 represents half of an year)
9000 = P*1.0525
P = = 8551.07 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.