Question

suppose some municipal bonds pay 6.2% simple interest. How much should you invest in the bonds if you want them to be worth $5000 in 10 years?​

Answer 1

`\bf ~~~~~~ \textit{Simple Interest Earned Amount} \\\\ A=P(1+rt)\qquad \begin{cases} A=\textit{accumulated amount}\dotfill&5000\\ P=\textit{original amount deposited}\\ r=rate\to 6.2\%\to (6.2)/(100)\dotfill &0.062\\ t=years\dotfill &10 \end{cases} \\\\\\ 5000=P[1+(0.062)(10)]\implies 5000=P(1.62) \\\\\\ \cfrac{5000}{1.62}=P\implies 3086.42\approx P`