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

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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=$150,000$