Question

Find how much should be invested to have $14,000 in 10 months at 9.1% simple interest.

Answer 1

`\$13,013.17`

Explanation:

we know that

The simple interest formula is equal to

`A=P(1+rt)`

where

A is the Final Investment Value

P is the Principal amount of money to be invested

r is the rate of interest

t is Number of Time Periods

in this problem we have

`t=10/12\ years\\ P=?\\ A=\$14,000\\r=0.091`

substitute in the formula above

`\$14,000=P(1+0.091*(10/12))`

`P=\$14,000/(1+0.091*(10/12))`

`P=\$13,013.17`