Determine the present value, P, you must invest to have the future value, A, at simple interest rate r after time t. Round answer to the nearest dollar.

A = $196.00

r = 10%

t = 4 years

Question

Kemp

14 October, 07:49

+2

Answers (1)

Know the Answer?

Paige Rosales · Answer 1

Find P given A

P=A[ ((1+i) ^n) - 1]:[i (1+i) ^n]

where n=t=4 and r=i

196.00 [ (1.1^4) - 1]:[0.1 (1.1^4) ]

=196 (0.4641:0.14641)

=621.29

Determine the present value, P, you must invest to have the future value, A, at simple interest rate r after time t. Round answer to the nearest dollar.A = $196.00r = 10%t = 4 years