80.3k views
8 votes
Final Amount 10,400

Initial investment ?
Interest Rate 2%
Time (Years) 4

How do i find the initial investment

1 Answer

11 votes

Answer:

$9629.63

Explanation:

I assume this is simple interest.

The formula for simple interest is

F = P(rt + 1)

where F = future value,

P = present value

r = annual interest rate

t = number of years

10,400 = P(0.02 × 4 + 1)

10,400 = 1.08P

10,400/1.08 = P

9,629.63 = P

Answer: $9629.63

User Steve Ruble
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