Problema Solution

Find the amount of money now necessary to be invested at 11% simple to yield 570.90 interest in 6 years

Answer provided by our tutors

interest = principal * rate * time


...one really needs to know specifically if the interest is paid annually but we assume here that 'simple' indicates that time is equal to 1 unit...


let 'p' represent the principal invested, then:

570.90 = 0.11p

p = 5181.81


approximately $5,181.81 should be invested