SOLUTION: Stanley would like to have R6800 in his savings account at the end of 48 months. If he earns 12% simple interest per annum determine how much he must initially invest

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Question 1089835: Stanley would like to have R6800 in his savings account at the end of 48 months. If he earns 12% simple interest per annum determine how much he must initially invest
Answer by josmiceli(19441) About Me  (Show Source):
You can put this solution on YOUR website!
+I+=+P%2Ar%2At+
+I+%2B+P+=+6800+
--------------------
+t+=+48%2F12+
+t+=+4+
+r+=+.12+
--------------------
+I+=+6800+-+P+
+6800+-+P+=+P%2A.12%2A4+
+6800+-+P+=+.48P+
+P+%2B+.48P+=+6800+
+1.48P+=+6800+
+P+=+4594.59+
He must invest $4,594.59 initially
---------------------
check:
+I+=+6800+-+P+
+I+=+6800+-+4594.59+
+I+=+2205.41+
+I+=+P%2Ar%2At+
+2205.41+=+4594.59%2A.12%2A4+
+2205.41+=+.48%2A4594.59+
+2205.41+=+2205.40+
( error due to rounding off, I think )