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Rudiy27
4 years ago
9

Determine the present value P that must be invested to have the future value A at simple interest rate r after time t. A​ = ​$70

00.00​, r​ = 9.5​%, t​ = 9 months
Mathematics
1 answer:
ZanzabumX [31]4 years ago
8 0

Answer:

  $6534.42

Step-by-step explanation:

Put the given values into the simple interest formula and solve for the remaining variable.

  A = P(1 +rt)

where P is the principal invested, r is the annual rate, and t is the number of years.

  $7000 = P(1 +0.095(9/12)) = 1.07125P

  $7000/1.07125 = P ≈ $6534.42

The value that must be invested is $6534.42.

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