How much money would a man have to invest at the rate of 5% per year,to have $1470 at the end of the year??
does the $1450 represent how much interest, or how much money he ended up with in total (including the original amount)?
If you mean that $1450 is the interest, then just plug the numbers into the simple interest formula
I = PRT
To calculate the amount of money a man would have to invest to have a specific amount at the end of the year, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = final amount
P = principal amount (initial investment)
r = annual interest rate (as a decimal)
n = number of times interest is compounded per year
t = number of years
In this case, we can rearrange the formula to solve for the principal amount (P):
P = A / (1 + r/n)^(nt)
Let's plug in the given information:
A = $1470
r = 5% = 0.05 (as a decimal)
n = 1 (compounded annually)
t = 1 (1 year)
P = 1470 / (1 + 0.05/1)^(1*1)
P = 1470 / (1 + 0.05)^1
P = 1470 / (1.05)^1
P = 1470 / 1.05
P ≈ $1,400
Therefore, the man would have to invest approximately $1,400 at a rate of 5% per year to have $1,470 at the end of the year.