Equation: P = A / (1 + rt) Calculation: First, converting R percent to r a decimal r = R/100 = 8%/100 = 0.08 per year, then, solving our equation
P = 100000 / ( 1 + (0.08 × 20)) = 38461.538461538 P = $ 38,461.54
The principal investment required to get a total amount, principal plus interest, of $ 100,000.00 from simple interest at a rate of 8% per year for 20 years is $ 38,461.54.
Answer: Most likely you are taking about the scientific method its a broken down way to test your hypothesis on a matter. This in a way is a thought process tool.