Question 1176671
.
Determine the present value P you must invest to have the future value A at simple interest rate r after time t.

A = ​$19,000​, r​ = ​$6.5%, t​ = 4 years
​
The present value that must be invested to get ​$19,000 after 4 years at an interest rate of ​6.5% is ​$__. ​
(Round up to the nearest​ cent.)
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            @ewatrrr solved the problem INCORRECTLY.


            She mistakenly used the formula for the compound account, 

            although the problem asked to find the solution for a simple interest.


            I came to bring a correct solution.



<pre>
A = P*(1+r*t)


19000 = P*(1 + 0.065*4)     


9000 = P*1.26


P = {{{19000/1.26}}} = 15079.37 dollars.     <U>ANSWER</U>
</pre>

Solved.


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To see many other similar and/or different solved problems on simple interest accounts, &nbsp;look into the lesson

&nbsp;&nbsp;&nbsp;&nbsp;- <A HREF=https://www.algebra.com/algebra/homework/percentage/lessons/Simple-interest-percentage-problems.lesson>Simple interest percentage problems</A> 

in this site.