SOLUTION: A little help please?! How much do you have to invest today at 5% interest if you want to have $18,000 in 6 months? (To the nearest cent) Thank you in advance!! I originally

Algebra ->  Finance -> SOLUTION: A little help please?! How much do you have to invest today at 5% interest if you want to have $18,000 in 6 months? (To the nearest cent) Thank you in advance!! I originally      Log On


   

Question 430327: A little help please?!
How much do you have to invest today at 5% interest if you want to have $18,000 in 6 months? (To the nearest cent)
Thank you in advance!!
I originally thought the anser was $13,231.66, but another person suggested the answer as something completely differnt! I'm lost and dont know what to do...
Answer by stanbon(75887) About Me  (Show Source):
You can put this solution on YOUR website!
How much do you have to invest today at 5% interest
if you want to have $18,000 in 6 months?
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Assuming you have simple interest you get:
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A(t) = P + Prt
A(t) = P(1+rt)
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18000 = P(1+0.05*(1/2))
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18000 = P(1.025)
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P = $17,560.98