**Problem: Calculating Present Value with Simple Interest**To determine the present value (P) you need to invest to reach a future value (A) using a simple interest rate (r) over a period of time (t), we are given:- Future Value $ A = \$12,000 $- Interest Rate $ r = 4.0\% $- Time Period $ t = 3 $ years---**Calculation:**The goal is to find the present value that must be invested to achieve $12,000 after 3 years at an interest rate of 4.0%. Round up to the nearest cent.If you need further assistance or illustrations, feel free to reach out.

Determine the present value P you must invest to have the future value A at simple interest rate r after time t. A $12,000, r = 4.0%, t = 3 years COO The present value that must be invested to get $12,000 after 3 years at an interest rate of 4.0% is the nearest cent.) (Round up to

Determine the present value P you must invest to have the future value A at simple interest rate r after time t. A $12,000, r = 4.0%, t = 3 years COO The present value that must be invested to get $12,000 after 3 years at an interest rate of 4.0% is the nearest cent.) (Round up to

Advanced Engineering Mathematics

10th Edition

ISBN:9780470458365

Author:Erwin Kreyszig

Publisher:Erwin Kreyszig

Chapter2: Second-order Linear Odes

Section: Chapter Questions

Problem 1RQ

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Question

**Problem: Calculating Present Value with Simple Interest**

To determine the present value (P) you need to invest to reach a future value (A) using a simple interest rate (r) over a period of time (t), we are given:

- Future Value $ A = \$12,000 $
- Interest Rate $ r = 4.0\% $
- Time Period $ t = 3 $ years

---

**Calculation:**

The goal is to find the present value that must be invested to achieve $12,000 after 3 years at an interest rate of 4.0%. Round up to the nearest cent.

If you need further assistance or illustrations, feel free to reach out.

Expert Solution

Step 1

Given-

$A = $ 12, 000 r = 4.0 % t = 3 years$

To find- The present value $P$ .

Formula Used-

Simple Interest Formula:

$A = P (1 + r t)$

where

$A$ is the Future value

$P$ is the Present value

$r$ is the Annual rate of interest

$t$ is Time in years

Step by step

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