Question

your father invested a lump sum 33 years ago at 4.25 percent interest. today, he gave you the proceeds of that investment which totaled $51,480.79. how much did your father originally invest? $15,500.00 $6,500.00 $11,999.45 $13,035.72 $5,929.47

Answer 1

To calculate the initial investment, we use the formula for simple interest and rearrange it to solve for the principal. The calculated answer will give us the initial amount invested 33 years ago.

Step-by-step explanation:

The question revolves around the concept of simple interest. To find out the initial investment your dad made 33 years ago, we need to calculate the present value or principal using the formula for simple interest. However, the given values include the future value, interest rate, and time.

Here's the step-by-step solution:
The formula of simple interest is as follows: A=P(1+rt) where: