If you want to earn 12% annual simple interest on an investment, how much should you pay for a note that will be worth $22,100.00 in 8 months.

Answer 1

I = principal * rate * time

22100 = P * (12%) * (8/12) <---- 8 months = 8/12 year

22100 = P (12/100) * 8/12

22100 = P (8/100)

22100 * 100/8 = P

2210000/8 = P

276250 = P