Answer:
4)P = $615.38. 5)P = $1,482.35
Step-by-step explanation:
<em><u>4)P = $615.38</u></em>
Equation:
P = A / (1 + rt)
Calculation:
First, converting R percent to r a decimal
r = R/100 = 4%/100 = 0.04 per year.
Solving our equation:
P = 640 / ( 1 + (0.04 × 1)) = 615.38461538462
P = $615.38
The principal investment required to get a total amount, principal plus interest, of $640.00 from simple interest at a rate of 4% per year for 1 years is $615.38.
<em><u>2)P = $1,482.35</u></em>
Equation:
P = A / (1 + rt)
Calculation:
First, converting R percent to r a decimal
r = R/100 = 12%/100 = 0.12 per year.
Solving our equation:
P = 2016 / ( 1 + (0.12 × 3)) = 1482.3529411765
P = $1,482.35
The principal investment required to get a total amount, principal plus interest, of $2,016.00 from simple interest at a rate of 12% per year for 3 years is $1,482.35.
