Question 1061796
the formula is f = p * (1+r)^n


f is the future value
p is the present value
r is the interest rate per time period
n is the number of time periods.


in your problem:


f = 75,000
p = what you want to find.
r = .05 per year
n= 5 years


your formula becomes:


75,000 = p * 1.05^5


divide both sides of this equation by 1.05^5 to get:


75,000 / 1.05^5 = p


solve for p to get p = 58764.46249


i believe you are using the simple interest formula and not the compound interest formula that i showed you above.


the simple interest formula is i = prt


i is the interest
p is the principal, otherwise known as the present value.
r is the interest rate per time period
t is the number of time periods.


not the right formula to use for compound interest type problems.
additionally, you were given the future value, not the present value.


to find the future value with a simple interest type formula, you would use the following formula:


f = p + i = p + prt


doesn't matter.
still the wrong formula to use since your problem is a compound interest rate type problem and not a simple interest rate type problem.