Question

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 = 11.5%, t = 4 years the present value that must be invested to get $19,000 after 4 years at an interest rate of 11.5% is $__. (round up to the nearest cent.)

Answer 1

The present value that must be invested to get $19,000 after 4 years at an interest rate of 11.5% is $13,013.70

What is simple interest?

The simple interest of an investment is determined as the principal investment, also known as the present value multiplied by the interest rate and the number of years, which means that the future value can be modeled as shown below:

A=PRT+P

A=P(RT+1)

A=future value=$19,000

P=present value=unknown

R=rate of return=11.5%

T=number of years that investment lasted=4

$19,000=P*(11.5%*4+1)

$19,000=P(0.46+1)

$19,000=P*1.46

P=$19000/1.46

P=$13,013.70

Find out more about simple interest on:brainly.com/question/25845758

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