Find the present value that must be invested in an account paying 11,5% annual simple insterest,?

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Find the present value that must be invested in an account paying 11,5% annual simple insterest,?

in order to have $16,000 after 5 years.

2007-03-29 15:10:21 · 2 answers · asked by Michele N 1 in Science & Mathematics ➔ Other - Science

2 answers

The interest will be 5 x 11.5 = 57.5 percent
We know that the original amount plus the interest = 16000
so, x + .575 x = 16000
1.575x = 16000
x = 16000/1.575 dollars

2007-03-29 15:19:18 · answer #1 · answered by ignoramus 7 · 0⤊ 0⤋

16000/(e^(.115*t)=t
t= what u want

2007-03-29 22:15:03 · answer #2 · answered by chris00780 2 · 0⤊ 0⤋