A = P(1 + rt) is used to find the principal amount P deposited, earning r% interest, for t years. Use this to find what principal amount P David invested at a 5% rate for 12 yr if A = 7,000.
but typo .05
huh? so plug in your numbers!
P(1+.08*12) = 7000
To find the principal amount P that David invested at a 5% interest rate for 12 years, we can rearrange the formula A = P(1 + rt) and solve for P.
Given:
A = $7,000
r = 5% (0.05)
t = 12 years
The formula A = P(1 + rt) becomes:
7,000 = P(1 + 0.05 * 12)
First, let's calculate the value inside the parentheses:
1 + (0.05 * 12)
= 1 + 0.6
= 1.6
Now, we can rewrite the equation as:
7,000 = P * 1.6
To solve for P, we need to isolate it on one side. We can do this by dividing both sides of the equation by 1.6:
7,000 / 1.6 = P
Now, let's calculate the value:
P ≈ 4,375
Therefore, David invested approximately $4,375 at a 5% interest rate for 12 years.
read twice before posting!
Thanks, Damon.