Question

And investment is gaining money at a rate of 8% per year and has a value of $10,500. Find the value of the investment 10 years ago. Round your answer to the nearest dollar.

Answer 1

• $1167

Explanation:

Given

• Initial value = x
• Interest rate = 8% = 0.08
• Time = 10 years
• Final amount = $10500

At simple rate

• x + x*0.08*10 = 10500
• x + 8x = 10500
• 9x = 10500
• x = 10500/9
• x = 1166.66
• x = 1167 rounded to the nearest dollar