Question

Determine the present value P that must be invested to have the future value A at simple interest rate r after time t.

A = $8000.00, r = 10.5%, t = 9 months
$
(Round up to the nearest cent as needed.)

Answer 1

$7,415.99

Explanation:

Hello, please consider the following.

`P\cdot (1+(10.5\%\cdot 9)/(12))=A = 8000 \\\\P = (8000)/((1+(31.5)/(400)))=(8000)/(1.07875)\\\\=7415.990730...`

So it gives $7,415.99

Thank you.