Find the present value of the future value of $9,200 at 7 1/2% simple interest for 5 years. (Round your answer to the nearest cent.)

Answer 1

9200 = P + P(.075)5

for 7.5% simple interest, P=Present Value of $9200

9200= P(1.375)

P = 9200/1.375 = 9200/11/8 = 9200(8/11) = 73600/11

= 6690.9090...

= about $6,690.91 rounded to nearest cent = Present Value