Question

Determine the present value P you must invest to have the future value A at simple interest rater after time t. A = $3000.00, r= 13.5%, t= 26 weeks $ (Round to the nearest cent.) rueCar Enter your answer in the answer box. Prerequisite Silk Test for alte Mathematics heart bypass. Learn more Customize . Getting Ready for Finite Mathematics Testa

Answer 1

P = $2815.94

Explanation:

I used the formula

`A(t)=P(1+r)^t`

Filling in with our values, keeping in mind that t is in years and we have our time as 26 weeks. Converting 26 weeks to years: 26 weeks = 1/2 year so t = .5

`3000=P(1.135)^(.5)`

Raise 1.135 to the .5 power to get

3000 = P(1.065363788)

Divide away the decimal to get

P = $2815.94