If Kate wants $25,000, then that's the future value. i is the rate of change, which is 6% in this case, which is rewritten as 0.06. P is the starting value, or what she has to originally put in, which is what we need to find. You put times t but it's actually to the power of t, which is time. The time in this problem is 16 years, so t is 16. Let's rewrite the equation with the plugged in values. 25,000 = P(1 + 0.06)^16 Now simplify: 25,000 = P(1.06)^16 25,000 = P(1.06^16) 25,000 = P(2.54) How do you find P? Isolate the variable! To do this, divide both sides by 2.54. 25,000 / 2.54 = 9842.52 So that means she needs to invest an original amount of $9,842.52 if she wants to have $25,000 in 16 years with a 6% interest rate per year.
Now just check your work: 25,000 = 9842.52(1 + 0.06)^16 25,000 = 9842.52(1.06^16) 25,000 = 9842.52(2.54) 25,000 = 25,000 It works! So $9,842.52 is the correct answer.
Its I=prt so plug it in I=300(.06)3 i got .06 because you have 6% you have to move the decimal the left twice 0.06 is what you get now its basic multiplying 300 times .06 times 3 so it would be 54 I=$54 the balence you get from adding the P to the I so the balence would be 356 Bal=$356
