Question

Determine the present value, P, you must invest to have the future value, A, at simple interest rate r after time t. Round answer to the nearest dollar.
A = $196.00
r = 10%
t = 4 years

Answer 1

$\bf \qquad \textit{Simple Interest Earned Amount}\\\\ A=P(1+rt)\qquad \begin{cases} A=\textit{accumulated amount}\to &\ 196\\ P=\textit{original amount deposited}\\ r=rate\to 10\%\to \frac{10}{100}\to &0.010\\ t=years\to &4 \end{cases}$

solve for P