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​ = ​$10.5%, t​ = 6 months ​ ​$__

Algebra ->  Equations -> 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​ = ​$10.5%, t​ = 6 months ​ ​$__      Log On


   

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) About Me  (Show Source):
You can put this solution on YOUR website!

Hi
Yes!  Use Simple Interest Formula:
 A = P(1 + rt)
 P+=+A%2F%281+%2B+rt%29
     
P+=+9000%2F%281+%2B+rt%29

+P+=+9000+%2F%281+%2B+.105%2A.5%29 = $8,551.07(rounded up to nearest cent)

Wish You the Best in your Studies.

Answer by ikleyn(52781) About Me  (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 = 9000%2F1.0525 = 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.