If you want to earn 15% annual simple interest on an investment, how much should you pay for a note that will be worth $27,000 i

Question

Shalnov [3]

2 years ago

11

If you want to earn 15% annual simple interest on an investment, how much should you pay for a note that will be worth $27,000 i

n 10 months?

Mathematics

1 answer:

photoshop1234 [79] · Answer 1 · 2022-06-09T08:17:13+03:00

photoshop1234 [79]2 years ago

3 0

For some payment P, you want
27000 = P + I
27000 = P + Prt . . . . substituting the formula for I
27000 = P(1 + .15·10/12) = 1.125
Then
27000/1.125 = P = 24000

You should pay $24,000 for the note.