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

Question

4 years ago

9

00.00, r = 9.5%, t = 9 months

1 answer:

ZanzabumX [31] · Answer 1 · 2021-12-13T18:36:34+03:00

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.

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