document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1176675>Question 1176675</A>: <I><SPAN STYLE=\"word-break: break-all;\"> A bank offers a CD that pays a simple interest rate of ​2.5%. How much must you put in this CD now in order to have ​$4,000 for a​ home-entertainment center in 4 years.\r<BR>\n" );
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document.write( "The present value that must be invested to get ​$4,000 after 4 years at an interest rate of ​2.5% is ​$__.​(Round up to the nearest​ cent.) </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #803974 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=803974\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> simple interest is 2.5% per year.\r<BR>\n" );
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document.write( "the simple interest formula is:\r<BR>\n" );
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document.write( "f = p + p * r * t.\r<BR>\n" );
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document.write( "f is the future value<BR>\n" );
document.write( "i is the interest<BR>\n" );
document.write( "p is th principal<BR>\n" );
document.write( "r is the interest rate per time period.<BR>\n" );
document.write( "t is the number of time periods.\r<BR>\n" );
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document.write( "in that formula:\r<BR>\n" );
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document.write( "f = 4000<BR>\n" );
document.write( "p = what you want find.<BR>\n" );
document.write( "r is equal to 2.5% per year = .025 per year.<BR>\n" );
document.write( "t is equal to 4 years.\r<BR>\n" );
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document.write( "the formula becomes:\r<BR>\n" );
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document.write( "4000 = p + p * .025 * 4\r<BR>\n" );
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document.write( "factor out the p to get:\r<BR>\n" );
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document.write( "4000 = p  * (1 + .025 * 4)\r<BR>\n" );
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document.write( "simplify to get:\r<BR>\n" );
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document.write( "4000 = p * 1.10\r<BR>\n" );
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document.write( "solve for p to get :\r<BR>\n" );
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document.write( "p = 4000 / 1.10 = 3636.363636.....\r<BR>\n" );
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document.write( "in fraction form, p = 3636 + 4/11.\r<BR>\n" );
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document.write( " </SPAN>\n" );
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