Question

Todd currently has $5,000. What was the value of his money four years ago if he's earned
4 percent interest each year?

Answer 1

future value=p x(1+i)t present value=p/(1+i)t

Answer 2

i'm assuming its simple interest right?

Answer 3

yep that's right

Answer 4

if his original sum was p dollars the
p + 4*(0.04p) = 5000

1 .16p = 5000
p = 5000/1.16 = 4310.34 dollars

Answer 5

nice, now this completely makes sense.... Thanks so much I have another one if you cold plz help If you invest $2,000 today in a bank that gives you a 4 percent annual interest rate, which of these items can you buy in seven years?

Answer 6

a home theater system worth 3000 a designer dress worth 2700 or a mountain bike worth 2500 ?

Answer 7

work out how much money you will get in 7 years

2000 +interest for 7 years
= 2000 + 7*0.04* 2000

Answer 8

what do you make that?

Answer 9

I got 2,560

Answer 10

right - so im afraid you cant buy your designer dress...

Answer 11

aww, drat,, j/k so I guess I'll at least be able to buy the mountain bike

Answer 12

but you can get fit with a mountain bike

Answer 13

true

Answer 14

lol

Answer 15

you are funny

Answer 16

If you save $3,000 at an interest rate of
14 percent per year, how much will you have at the end of six years?

Answer 17

3000 plus 6 times 0.14 x 3,000 right?

Answer 18

I need help I don't think this is right

Answer 19

A(t)=p(1+rt)
use this formula