SOLUTION: Please help me solve this word problem about simple interest:
How much should you invest at 4% for 22 months to have $7000 at the end of that period? (Round your answer to the n
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How much should you invest at 4% for 22 months to have $7000 at the end of that period? (Round your answer to the n
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Question 1194590: Please help me solve this word problem about simple interest:
How much should you invest at 4% for 22 months to have $7000 at the end of that period? (Round your answer to the nearest cent.)
Which Formula to use?: I=Prt , A=p*(1+(r)(t)) , A=R[(1+i)^n-1]/i Answer by ikleyn(52781) (Show Source):
If it is about (as your post says it),
then use the formula for the future value of a simple interest account
FV = P*(1+rt),
where P is the principal amount; r is the annual percentage as a decimal; t is the time in years.
In your case, the given values are
FV = 7000 dollars;
r = 4% = 0.04;
t = years.
P is unknown principal (how much to invest).
So, your equation is
7000 = P*(1 + 0.04*(22/12)}}} = 1.07333*P.
From this equation,
P = = 6521.60 dollars.
ANSWER. You should invest $6521.60: it is your principal.
Solved.
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To see many other similar (and different) solved problems on simple interest accounts, look into the lesson
- Simple interest percentage problems
in this site.
