SOLUTION: What amount of money should you invest today, at 6 1/8% simple interest per year, in order to yield a future value of $8,500 at the end of two years and three months?

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Question 309835: What amount of money should you invest today, at 6 1/8% simple interest per year, in order to yield a future value of $8,500 at the end of two years and three months?

Answer by stanbon(75887) About Me  (Show Source):
You can put this solution on YOUR website!
What amount of money should you invest today, at 6 1/8% simple interest per year, in order to yield a future value of $8,500 at the end of two years and three months?
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A(t) = P + I
A(t) = P + Prt
A(t) = P(1+rt)
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A(2 1/4 yrs) = P (1 + 0.06125*2.25)
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8500 = P(1.1370)
P = $7470.48
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Cheers,
Stan H.