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ratelena [41]
3 years ago
7

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 tt is the time (in years).
a. Solve the formula for p.

p=

b. An investment earns 8% simple interest. What amount of principal is needed to have $6000 after 7 years? Round your answer to the nearest cent.

Amount of principal: $
Mathematics
1 answer:
Vitek1552 [10]3 years ago
5 0
A) V = P + PRT
<span>     
    V=P(1+RT)
 
    P=A/(1+RT)

P = 6000 / (1 + .08 X 7)

P = 6000 / 1.56

P = $3,846.15</span>
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