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present value of money

Determine the present value P you must invest to have the future value A at simple interest rate r after time t.
A=$8000.00 r=11.5% t=6months.
Round this to the nearest cent

Solution Preview

The simple interest earned over a period of time t is
I = P * r * t, where t is ...

Solution Summary

The solution shows how to calculate the present value of money using simple interest rate.