Question

Interest : 40principal: xrate: 1.66%time : 4

Answer 1

The simple interest is given by:

`I=PVrt`

Where:

PV = Present value or principal

I = Interest

r = rate

t = time

Solve for PV:

`\begin{gathered} PV=(I)/(rt) \\ so\colon \\ PV=(40)/(0.0166\cdot4) \\ PV=602.4 \end{gathered}`

Answer:

$602.4