Question 1176675
simple interest is 2.5% per year.


the simple interest formula is:


f = p + p * r * t.


f is the future value
i is the interest
p is th principal
r is the interest rate per time period.
t is the number of time periods.


in that formula:


f = 4000
p = what you want find.
r is equal to 2.5% per year = .025 per year.
t is equal to 4 years.


the formula becomes:


4000 = p + p * .025 * 4


factor out the p to get:


4000 = p  * (1 + .025 * 4)


simplify to get:


4000 = p * 1.10


solve for p to get :


p = 4000 / 1.10 = 3636.363636.....


in fraction form, p = 3636 + 4/11.