Problema Solution
Determine the present value, P, you must invest to have the future value, A, at simple interest rate r after time t. a=$6000, r=6.5%, t=3 years
Answer provided by our tutors
P = ?
A = $6,000
r = 0.065 or 6.5%
t = 3 years
A = P*r*t
P = A/(rt)
P = 6000/(0.065*3)
P = $30,769.23
The present value is $30,769.23.