How much should you invest at 2% for 20 months to have $5000 at the end of that period?

Question

936 views around the world

You can reuse this answer
Creative Commons License

Answer 1 · 2017-08-02T22:11:56

#$150,000#

See below

#SI=(PRT)/100#

where P= principle #(x)#

R= rate - as a percent #(2%)#
T= time in years #(20/12)#
SI= simple interest earned #($5000)#

Using algebra you can manipulate the formula to solve for P

#SI=(PRT)/100" "rArr" "P=(100SI)/(RT)#

#P=(100*5000)/(2*1.666666)#

#P=$150,000#