Question 1152737: You want to buy a new camera for Christmas by saving $1,999 in only eight months. You purchase a certificate of deposit(CD) from your local bank that has a simply interest rate of 6.09%. How much must you put into the CD in order to have your desire camera? Round answer UP to the nearest penny.
Thank you in advance.
SYL
Found 2 solutions by jim_thompson5910, MathTherapy:
Answer by jim_thompson5910(35256)   (Show Source):
You can put this solution on YOUR website!
Answer: 1921.01 dollars
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Work Shown:
To calculate simple interest, we use this formula: 
i = interest earned
P = principal = amount deposited or invested
r = interest rate in decimal form
t = time in years
If we add on the amount of interest earned (i) to the original principal (P), then we get the final amount in the account after t years
The total amount, after interest is added, is then equal to some value A
Therefore, a much more useful equation is 
We have,
A = 1999 = desired target to save to
P = unknown, what we want to solve for
r = 0.0609, decimal form of 6.09%
t = 8/12 since 8 months = 8/12 years
Let's plug in the given values and solve for P
 Plug in A = 1999, r = 0.0609, and t = 8/12
 Use your calculator for this step
 Add
 Divide both sides by 1.0406
 Simplify the right side
 Use your calculator for this step. This value is approximate.
 Flip both sides
 Round up to nearest penny
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If you place $1,921.01 in a CD at 6.09% for 8 months, then you earn
 amount earned in interest
So the total amount is 
Or we can use the other equation we found
We get the same result either way, which confirms P = 1921.01 is correct.
Answer by MathTherapy(10552)  (Show Source):
You can put this solution on YOUR website! You want to buy a new camera for Christmas by saving $1,999 in only eight months. You purchase a certificate of deposit(CD) from your local bank that has a simply interest rate of 6.09%. How much must you put into the CD in order to have your desire camera? Round answer UP to the nearest penny.
Thank you in advance.
SYL
Formula for future value of a single amount, based on SIMPLE INTEREST:  ,
where:  ($1,999, in this case)
P = Present Value or amount To be Invested/Deposited (Unknown, in this case)
T = Time, in years ( )
R = Annual interest rate ($6.09%, or .069, in this case)
then becomes: 
P, or Present Value or amount To be Invested/Deposited = 
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