Answer: P = $70.42
Step-by-step explanation:
Equation:
P = A / (1 + rt)
Calculation:
First, converting R percent to r a decimal
r = R/100 = 7%/100 = 0.07 per year.
Solving our equation:
P = 100 / ( 1 + (0.07 × 6)) = 70.422535211268
P = $70.42
The principal investment required to get a total amount, principal plus interest, of $100.00 from simple interest at a rate of 7% per year for 6 years is $70.42.
