Question

Find the present value, using the future value formula and a calculator. Future value is $6,000 in two years at 9.5% simple interest. Round your answer to the nearest cent (two decimal places). Enter only the number without $ sign.

Answer 1

`~~~~~~ \textit{Simple Interest Earned Amount} \\\\ A=P(1+rt)\qquad \begin{cases} A=\textit{accumulated amount}\dotfill & \$6000\\ P=\textit{original amount deposited}\\ r=rate\to 9.5\%\to (9.5)/(100)\dotfill &0.095\\ t=years\dotfill &2 \end{cases} \\\\\\ 6000=P[1+(0.095)(2)]\implies \cfrac{6000}{1.19}=P\implies 5042.02\approx P`