Question

I wish to have $10,000 at the end of 8 yers in a bank offering a simple interest rate of 7.5% per year. How much should I deposit in the bank THIS IS URGENT! PLEASE ANSWER! I REALLY NEED HELP! :((( :c :'( *crys

Answer 1

Answer:

You have to invest  $6,250

Step-by-step explanation:

very simple applying the simple interest formula which is

$A = P (1 + rt)$

Given data

A, final amount =  $10,000

P, initial principal balance=  ?

r, annual interest rate = 7.5%

t, time (in years)= 8 years

we can substitute our given data to find the principal needed.

$10000= P(1+0.075*8)\\\10000= P(1.6)$

Divide both sides by 1.6 we have

$P= \frac{10000}{1.6} \\\P= 6250$

P= $6,250