Charlie wants to buy a $900 TV in 15 months. How much should he invest now at 14% simple interest to have the money in 15 months?
Po + 0.14/yr * 1.25yr *Po = 900,
Po + 0.175 * Po = 900,
1.175 * Po = 900
Po = 900/1.175 = 765.96. = Investment
To find out how much Charlie should invest now at 14% simple interest to have the money for a $900 TV in 15 months, we can use the formula for calculating simple interest:
Simple Interest = Principal (P) * Rate (R) * Time (T)
The principal represents the initial amount Charlie needs to invest, the rate represents the interest rate, and the time represents the duration in years.
In this case, the principal we need to calculate, the rate is 14%, and the time is 15 months, which is equivalent to 15/12 = 1.25 years.
Let's calculate the principal:
Simple Interest = Principal * Rate * Time
$900 = Principal * 0.14 * 1.25
To solve for the principal, we can rearrange the equation:
Principal = $900 / (0.14 * 1.25)
Principal ≈ $514.29
Therefore, Charlie should invest approximately $514.29 now at 14% simple interest to have the money for the $900 TV in 15 months.