Answer:
[tex]\$5,500[/tex]
Step-by-step explanation:
we know that
The simple interest formula is equal to
[tex]A=P(1+rt)[/tex]
where
A is the Final Investment Value
P is the Principal amount of money to be invested
r is the rate of interest
t is Number of Time Periods
in this problem we have
[tex]t=20\ years\\ P=?\\ A=\$14,300\\r=8\%=8/100=0.08[/tex]
substitute in the formula above
[tex]14,300=P(1+0.08*20)[/tex]
[tex]14,300=P(2.6)[/tex]
[tex]P=14,300/(2.6)[/tex]
[tex]P=\$5,500[/tex]
