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Norma-Jean [14]

3 years ago

7

find the present value of an investment that is worth $19,513.75 after earning 3percent simple interest for 5.5 years

1 answer:

Dahasolnce [82]3 years ago

5 0

Answer:

present value = $16750

Step-by-step explanation:

The simple interest formula allows us to calculate A, which is the final amount. According to this formula, the amount is given by A = P (1 + r*t), where P is the principal, r is the annual interest rate in decimal form, and t is the loan period expressed in years

simple interest formula:

t: time

P: present value

A: amount

r : anual interest

A = P (1 + r*t)

P = A / (1 + r*t)

P = 19,513.75 / (1 + 3/100 * 5.5)

P = 19,513.75/ (1 + 0.165)

P = 19,513.75 / 1.165

P = 16750

present value = $16750

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