Question 280452
Simple interest is not compounded.


The formula would be:


y = x + (.06x*6) = x + .36x = 1.36x


You have y = 1.36*x


Divide both sides of this equation by 1.36 to get x = y/1.36


If y = 25000, then x = 25000/1.36 = 18382.35294


You have to invest 18382.35294 today to have 25000 in 6 years at 6% per year simple interest (no compounding).