SOLUTION: What principal P must be invested for t=7 years at the simple interest rate r=12% so that the future value grows to $8280? A building is worth $829,000 is depreciated for tax

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Question 343774: What principal P must be invested for t=7 years at the simple interest rate r=12% so that the future value grows to $8280?

A building is worth $829,000 is depreciated for tax purposes by its owner, if you use straight line method. The value of the building,y,after,x months of use, is given by Y=829,000-2600x dollars. After how many yrs wil the valueof the building be 610,600? Afte how many yers?
Thanks Homework due in early am
Answer by jim_thompson5910(35256) About Me  (Show Source):
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A=P%2BPrt Start with the simple interest formula.


8280=P%2BP%2A0.12%2A7 Plug in A=8280 (the future value), r=0.12 (the decimal equivalent of 12%), and t=7.


8280=P%281%2B0.12%2A7%29 Factor out the GCF "P" from the right side.


8280=P%281%2B0.84%29 Multiply 0.12 and 7 to get 0.84.


8280=P%281.84%29 Add 1 to 0.84 to get 1.84.


8280%2F%281.84%29=P Divide both sides by 1.84 to isolate "P".


P=8280%2F%281.84%29 Rearrange the equation.


P=4500 Divide.


So if you initially invest $4500 at an interest rate of 12% for 7 years (using simple interest), you'll get $8280.


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