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 = 5000.00,r = 11,5%, t = 26 (round to the nearst cent)
Answer provided by our tutors
The formula used to work out simple interest is;
A=P(1+in)
By substituting the values we have into the variables:
5000 = P(1+0.115 * 26) ==> P = 5000/3.99 ==> 1253.13 answer