Question

Use the formula for future value with simple interest to find the missing quantity. Round to the nearest cent.

A = $16,000, P = ?, r = 6.5%, t = 3 years

I got 780.49. Is this correct?

Answer 1

Try again!

Answer 2

Oh man.

Answer 3

Could you write down the formula you used and how you used it.

Answer 4

?

Answer 5

I used A = P(1+rt)
16000= p (1.6.5 *3)

Answer 6

You mean \(16000=P(1+0.065\times3)\).

Answer 7

Be careful when dealing with the interest rate. 6.5%=0.065.

Answer 8

3%=3/100=0.03.
4%=4/100=0.04
5.5%=5.5/100=0.055 and so on.

Answer 9

ohhh... okay THANK YOU! so for this question:
Determine the present value P you must invest to have the future value A at simple interest rate r after time t. Round to the nearest cent.

A = $7,500, r = 9.5%, t = 2 years
Would I do 7,500 = P (1 + 0.095 x 2) and then the answer would be 6,302.50?

Answer 10

Great!

Answer 11

Correct.

Answer 12

THANK YOU!