How much money needs to be invested so that the balance after 5 years is 10,000 if the interest rate is 6.8%

Question

a if interest is computed as simple interest

b if interest is compounded yearly

Answer 1

A(t) = P(1+r)^t

Use this formula with r = 0.068, t=5, A(5) = 10,000.  Solve for P.