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 = $15,000, r = 11.0%, t = 2 years

Answer 1

use the simple interest formula

Answer 2

A=prt?

Answer 3

12295.04
a= p+prt

Answer 4

did u got it?

Answer 5

so... 15,000= p(.11)(2)

15,000=.22x
x=68182?

Answer 6

1.22p=15000

Answer 7

oh I was suppose to add 1
?

Answer 8

yes

Answer 9

12,295.08?

Answer 10

is that the present value? 12,295.08?

Answer 11

if value A is the total.. and not interest only

Answer 12

am I wrong then?

Answer 13

the question is what is the present value? I got 12,295.08?

Answer 14

A is total future value
12.9k is correct

Answer 15

I have no idea, it's

12,295.08 if you're accounting A to be the future total

and it's

68181.82 if A is the Future Interest.... your teacher needs to make his question much clearer. they're vague

Answer 16

thanks for the help!