Use the formula A = P(1 + rt) to find the indicated quantity.
-A = $16,400; r = 10%; 90 days. Find P.
A) $16,400
B) $400.00
C) $16,000
D) $16,810

Question

Quizplus · Accepted Answer

A = P(1 + rt)
16,400 = P(1 + 0.10 × 90/365)
16,400 = P(1.0225)
P = 16,400/1.0225
P = $16,051.28, which is closest to option C, $16,000. We need to solve for P, which is the principal amount. Plugging in the given values into the formula:

A = P(1 + rt)

$16,400 = P(1 + 0.1 * 90/365)

Simplifying the right side:

$16,400 = P(1.02191781)

Dividing both sides by 1.02191781:

$16,000 = P

Therefore, the answer is choice C, $16,000.

Use the Formula a = P(1 + Rt) to Find