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=PV+ PV.075)(5)= PV(1+.375) = PV(1.375)

PV = 9200/1.375 =6690.909090...

= about $6,690.91 = Present Value of $9200 at 7.5% simple interest for 5 years, rounded to nearest cent (no compounding)

each year the simple = .075(9200/1.375) = 690/1.375=501.81818...

after 5 years total interest = 5(501.81818...=2509.0909...

6690.90909...+ 2509.0909...= 9199.999... = exactly $9200