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The formula for the future value V (in dollars) of an investment earning simple interest is V=p+prt, where p (in dollars) is the principal, r is the annual interest rate (in decimal form) and t is the time (in years). a. Solve the formula for p

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p=


b. An investment earns 6% simple interest. What amount of principal is needed to have $3000 after 5 years? Round your answer to the nearest cent.

Amount of principal: $

Respuesta :

babutlucas1030

The answer is for the equation...

V/(1+rt)


It is written as a fraction... and the V goes on top and the (1+rt) goes on the bottom. Make sure that the V is a capital.

Then the amount of principal is 2,307.69

Using the formula given, we find that:

  • a) The solution for p is [tex]p = \frac{V}{1 + rt}[/tex]
  • b) The principal will be of $2,307.69.

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Item a:

The future value formula is given by:

[tex]V = p + prt[/tex]

Solving for p:

[tex]p + prt = V[/tex]

[tex]p(1 + rt) = V[/tex]

[tex]p = \frac{V}{1 + rt}[/tex]

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Item b:

  • 6% interest means that [tex]r = 0.06[/tex]
  • Amount of $3000 means that [tex]V = 3000[/tex]
  • 5 years means that [tex]t = 5[/tex]

The principal is:

[tex]p = \frac{V}{1 + rt} = \frac{3000}{1 + 5(0.06}} = 2307.69[/tex]

The principal will be of $2,307.69.

A similar problem is given at https://brainly.com/question/5123313

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