document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=584755>Question 584755</A>: <I><SPAN STYLE=\"word-break: break-all;\"> George and Lisa would like to build a double garage in their backyard. They estimate it will cost $15,000 and they would like to pay for it without using financing. If they are willing to wait for 4 years, how much do they need to invest now in order to have $15,000 if they can receive simple interest of 5% per year? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #372870 by </B><A HREF=/tutors/aboutme.mpl?userid=stanbon><B>stanbon(75887)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=stanbon><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=372870\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> George and Lisa would like to build a double garage in their backyard. They estimate it will cost $15,000 and they would like to pay for it without using financing. If they are willing to wait for 4 years, how much do they need to invest now in order to have $15,000 if they can receive simple interest of 5% per year?<BR>\n" );
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document.write( "A(t) = P(1 + rt)<BR>\n" );
document.write( "15000 = P(1 + 0.05*4)<BR>\n" );
document.write( "15000 = P(1.2)<BR>\n" );
document.write( "P = $12,500<BR>\n" );
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document.write( "Cheers,<BR>\n" );
document.write( "Stan H. </SPAN>\n" );
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