Problema Solution
Gary makes an investment at 4.5% simple interest. At the end of the year, the total value is $3448.50. How much was originally invested.
Answer provided by our tutors
let
P = the amount originally invested
A = $3448.50 total value (future value)
r = 0.045 or 4.5% simple interest
t = 1 year
A = P(1 + rt)
P(1 + 0.045*1) = 3448.50
by solving we find:
P = $3,300
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$3,300 was originally invested.