Question

How much should you put in an investment paying a simple interest rate of​ 5% if you needed​ $4000 in eighteen​ mont

Answer 1

$ 53,333.33

Explanation:

The formula for simple interest is I = PRT. So, we are trying to solve for P(original investment). To do this, we get the formula P = I / RT. This is the formula we will be using.

Work:

First, converting R percent to r a decimalr = R/100 = 5%/100 = 0.05 per year,putting time into years for simplicity,18 months ÷ 12 months/year = 1.5 years,then, solving our equation

P = 4000 / ( 0.05 × 1.5 ) = 53333.333333333

P = $ 53,333.33