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

Question

asked Dec 15, 2020 53.1k views

1 Answer

Emmily · Answer 1 · 2020-12-20T08:28:14+0000

Answer:

$\$13,013.17$

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

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

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

$P=\$13,013.17$