SOLUTION: the principle that will amount to R 10 000 in 8 months time if the simple interest rate is 9,75% per year is??

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Question 986100: the principle that will amount to R 10 000 in 8 months time if the simple interest rate is 9,75% per year is??
Answer by stanbon(75887) About Me  (Show Source):
You can put this solution on YOUR website!
the principle that will amount to R 10 000 in 8 months time if the simple interest rate is 9,75% per year is??
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A(t) = P(1+r*t)
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P = A(t)/(1+r*t)
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Ans: P = 10,000/(1+0.0975*(2/3)) = 10,000/1.065 = $9389.67
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Cheers,
Stan H.
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