Ask Question
27 August, 04:41

The formula for the future value V (in dollars) of an investment earning simple interest is V=p+prt, where p (in dollars) is the principal, r is the annual interest rate (in decimal form) and t is the time (in years).

a. Solve the formula for p

b. An investment earns 6% simple interest. What amount of principal is needed to have $3000 after 5 years? Round your answer to the nearest cent

+1
Answers (1)
  1. 27 August, 05:38
    0
    a)

    V=p+prt

    now we solve for P

    V=P (1+rt)

    Divide both sides by (1+rt)

    P=V: (1+rt) ... answer

    b)

    P=V: (1+rt)

    P=3,000: (1+0.06*5)

    P=2,307.69
Know the Answer?