SOLUTION: Determine the present value P you must invest to have the future value A at simple interest rate r after time t. Round to the nearest cent.
A=$7000.00, R=10.5%, T=13 Weeks
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-> SOLUTION: Determine the present value P you must invest to have the future value A at simple interest rate r after time t. Round to the nearest cent.
A=$7000.00, R=10.5%, T=13 Weeks
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Question 1182553: Determine the present value P you must invest to have the future value A at simple interest rate r after time t. Round to the nearest cent.
A=$7000.00, R=10.5%, T=13 Weeks
You can put this solution on YOUR website! the formula is A = P + PRT
A is the future value = 7000.
R is the interest rate per year = 10.5% / 100 = .105
T is the number of weeks = 15 /52 = .25 years.
since it is simple interest, you should be able to work this in years or in weeks and get the same answer.
working in years, the formula becomes:
7000 = P + P * .105 * .25
simplify to get:
7000 = P + .02625 * P
simplify further to get:
7000 = 1.02625 * P
divide both sides of the equation by 1.0265 to get:
7000 / 1.02625 = P
solve for P to get:
P = 6820.95 rounded to the nearest penny.
working in weeks, the formula becomes:
7000 = P + P * .105/52 * 13
the interest rate per year is converted to interest rate per week.
the number of weeks are used as is.
simplify to get:
7000 = P + .02625 * P
simplify to get:
7000 = 1.02625 * P
solve for P to get:
P = 6820.95 rounded to the nearest penny.
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. Round to the nearest cent.
A=$7000.00, R=10.5%, T=13 Weeks
