document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1120101>Question 1120101</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Ed invested a certain amount at 10% simple interest per year after 2 years the interest he recieved amounted to 3,000.  <BR>\n" );
document.write( "how much did he invest?<BR>\n" );
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document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #735763 by </B><A HREF=/tutors/aboutme.mpl?userid=Theo><B>Theo(13342)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Theo><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/cgi-bin/show-face.mpl?user=Theo><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=735763\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> f = p * (1 + r) ^ n\r<BR>\n" );
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document.write( "f = future value<BR>\n" );
document.write( "p = present value<BR>\n" );
document.write( "r = interest rate per time period<BR>\n" );
document.write( "n = number of time periods.\r<BR>\n" );
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document.write( "in your problem, this becomes:\r<BR>\n" );
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document.write( "p + 3000 = p * (1 + .10) ^ 2\r<BR>\n" );
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document.write( "subtract p from both sides of this equation to get:\r<BR>\n" );
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document.write( "3000 = p * (1 + .10) ^ 2 - p\r<BR>\n" );
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document.write( "factor out the p to get:\r<BR>\n" );
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document.write( "3000 = p * (1 + .10) ^ 2 - 1)\r<BR>\n" );
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document.write( "simplify to get:\r<BR>\n" );
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document.write( "3000 = p * .21\r<BR>\n" );
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document.write( "solve for p to get p = 3000 / .21 = 14285.71429.\r<BR>\n" );
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document.write( "that's your present value.\r<BR>\n" );
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document.write( "to confirm this is accurate, replace p in your equation with that to get:\r<BR>\n" );
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document.write( "p + 3000 = p * (1 + .10) ^ 2 becomes:\r<BR>\n" );
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document.write( "17285.71429 = 14285.71429 * (1 + .10) ^ 2, which becomes:\r<BR>\n" );
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document.write( "17285.71429 = 17285.71429, which is true.\r<BR>\n" );
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document.write( "this confirms the solution is correct.\r<BR>\n" );
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