Answered

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I want to withdraw 400.00 for 9 years at 8%. How much do I need to deposit

Sagot :

Absor201idn

Answer:

The principal investment required to get a total amount, principal plus interest, of $400.00 from simple interest at a rate of 8% per year for 9 years is $232.56.

Step-by-step explanation:

Given

  • Total accrued Amount A = 400.00 (Let say $)
  • Time period t = 9 years
  • Interest rate r = 8% = 0.08

To determine

Principle P = ?

Using the formula

P = A / (1 + rt)

substituting A = 400.00, t = 9 and r = 0.08 in the formula

P = 400 / ( 1 + (0.08 × 9))

P = $232.56

Therefore, the principal investment required to get a total amount, principal plus interest, of $400.00 from simple interest at a rate of 8% per year for 9 years is $232.56.

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