Determine the present value P you must invest to have the future value A at simple...
Determine the present value P you must invest to have the future value A at simple interest rate r after time t. A = $2000.00, r = 9.0%, t = 3 months
Homework Answers
A = P(1 + rt)
Where A = amount = 2000
P = present value.
r = rate of interest = 0.09
t = time in year = 3/12
So,
2000 = P ( 1 + 0.09 * 3/12)
Solve for P
P = 1955.99
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