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 = $4,000.00, r = 11%, t = 26 weeks
(round to the nearest cent)
Answer provided by our tutors
a=p(1+r/n)^nt
P = principal amount (the initial amount you borrow or deposit)
r = annual rate of interest (as a decimal)
t = number of years the amount is deposited or borrowed for.
A = amount of money accumulated after n years, including interest.
n = number of times the interest is compounded per year
4000=p(1+0.11)^0.5
p=3796.63
26 weeks=0.5 yr approx =6 month