Answer to Question #274566 in Financial Math for jade

Question

How much Ione invest if she wants to have P19,640.62 at the end of 2.75 years at a bank that offers 11(1/4)% simple interest

Answer 1

Simple interest formula is; $A=P(1+rt)$

$19,640.62=P(1+\frac{45}{400}\times2.75)$

$19,640.62=1.309375P$

$P=\frac{19640.2}{1.309375}=P14,999.7\approx P15,000$