Determine the present value P you must invest to have the future value A at simple interest rate after time t.
(Round to the nearest cent)
A=$14000 r= 9.5% t = 5years
The formula to calculate the present value P is:
P = A / (1 + rt)
Plugging in the values given:
A = $14000
r = 9.5% = 0.095 (decimal form)
t = 5 years
P = 14000 / (1 + (0.095 * 5))
P = 14000 / (1 + 0.475)
P = 14000 / 1.475
P ≈ $9,491.53
Therefore, you must invest approximately $9,491.53 to have a future value of $14,000 at a simple interest rate of 9.5% after 5 years.