Question

Find the present value of an investment that is worth $19,513.75 after earning 3% simple interest for 512 years.

Answer 1

Answer:

$16,750.00

Step-by-step explanation:

Simple interest:

I = Prt

Value of an investment of value P over t years at r interest rate:

F = P + Prt

F = P(1 + rt)

19,513.75 = P(1 + 0.03 * 5.5)

1.165P = 19,513.75

P = 16,750

Answer: $16,750.00

Answer 2

Answer:

$ 16750

Step by step explanation

Solution,

Simple Interest = PTR / 100

Rate = 3 %

Time = 5 1/2

= 5 × 2 + 1 / 2

= 11 / 2 years

Let present value of investment be P

Simple Interest = P × 3 × 11 / 2 × 100

Simple Interest = 33 P / 200

Now,

Amount = principal + Simple Interest

plug the values

19513.75 = 200 P + 33 P / 200

Apply cross product property

200 × 19514.75 = 233 P

Calculate the product

3902950 = 233 P

P = 3902950 / 233

P = 16750

Hope this helps...

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