Best Answer

So with simple interest, the same amount is paid each year. F = P + i, with F is the future value, P is the Present value and i is the amount of interest.

i = P * r * t, which is Present X rate X time = P * 0.048 * 10 = P * 0.48, so with F = 1850, we have:

1850 = P + P*0.48 = P*1.48 --> P = 1850/1.48 = 1250

Q: How much money would you invest that pays 4.8 percent simple interest to have a balance of 1850 after 10 years?

Write your answer...

Submit

Still have questions?

Continue Learning about Math & Arithmetic

29.86

1200 rate*money invested*interest(divided by a 100) 5*4000*.06=1200

The formula for simple interest is Interest = Principal x Rate x Time ÷ 100 As the rate is an annual rate and the period is 1 year then Interest = Principal x 4.5/100. The balance at the year end = Principal + Interest = Principal x 104.5/100.

6% of $4,000 = $240 .If it's paid 5 times, he receives (240 x 5) = $1,200 .

This answer is False!!

Related questions

One year.

Kate invested 4500.

29.86

12.76

463.72

1200 rate*money invested*interest(divided by a 100) 5*4000*.06=1200

The formula for simple interest is Interest = Principal x Rate x Time ÷ 100 As the rate is an annual rate and the period is 1 year then Interest = Principal x 4.5/100. The balance at the year end = Principal + Interest = Principal x 104.5/100.

You have confused between the terms. Simple interest and interest at flat rate is one and the same. The other type of interest is diminishing balance or reducing balance. These are interests associated with loans or finances sought. Well a simple rule of thumb is that usually simple interest rate is about half of rate on reducing balance. For e. g. if rate at reducing balance is 12% then simple interest for the same will be around or just more than 6%

6% of $4,000 = $240 .If it's paid 5 times, he receives (240 x 5) = $1,200 .

This answer is False!!

Simple interest would be 1040

Simple interest would be 360