Question

The formula for the future value V (in dollars) of an investment earning simple interest is V=p+prt, where p (in dollars) is the principal, r is the annual interest rate (in decimal form) and t is the time (in years). a. Solve the formula for p
.

p=


b. An investment earns 6% simple interest. What amount of principal is needed to have $3000 after 5 years? Round your answer to the nearest cent.

Amount of principal: $

Answer 1

A)
V=p+prt
Solve for p
V=p (1+rt)
Divide both sides by (1+rt)
P=V÷(1+rt)...answer

B)
P=V÷(1+rt)
P=3,000÷(1+0.06×5)
P=2,307.69

Hope it helps!

Answer 2

The answer is for the equation...

V/(1+rt)

It is written as a fraction... and the V goes on top and the (1+rt) goes on the bottom. Make sure that the V is a capital.

Then the amount of principal is 2,307.69