Use the formula for the amount, A = P (1 + rt), to find the indicated quantity.?

Question

5) Use the formula for the amount, A = P (1 + rt), to find the indicated quantity. 

P= $3600; r = 11%; t = 1 quarter; A = ? 

A = $ ___ (type an integer or a decimal) 

6) Determine the present value P you must invest to have the future value A at simple interest rate r after time t. 

A = $5000.00 
r = 10.5%; 
t= 13 weeks 

$____ (round to nearest cent)

Answer 1

5) Formula is A =P(1 + rt)

Substitute P = $3600, r = 11% = 0.11 and t = 1quarter = 1/4 = 0.25 year in the formula.

A = 3600 (1 + (0.11)(0.25))

   = 3600 (1 + 0.0275)

   = 3600 (1.0275)

   = 3699.

Therefore A = $ 3699.

6) Formula is A =P(1 + rt)

We have find P, so convert the equation into P = A / (1 + rt)

Substitute A = $5000, r = 10.5% = 10.5/100 = 0.105

and t = 13 weeks = 91days = 3 months = 1/4 year = 0.25 year in the formula.

P = 5000 (1 + (0.105)(0.25))

   = 5000 (1.02625)

   = 5131.25

Therefore P = $ 5131.25.