Question

you decided to invest some money in a cd that yields 4.87% simple interest when invested for 10 years. how much must you invest so that after those 10 years, your cd is worth $267,000?
use this formula:
$pv = \frac{fv}{(1+rt)}$
enter the dollar amount rounded up to the nearest cent.
your answer:

Explanation:

Step1: Identify given values

$FV = 267000$, $r = 0.0487$, $t = 10$

Step2: Calculate denominator $1+rt$

$1 + (0.0487 \times 10) = 1 + 0.487 = 1.487$

Step3: Compute present value $PV$

$PV = \frac{267000}{1.487} \approx 179556.15$

Step4: Round up to nearest cent

Since the unrounded value is ~179556.147, rounding up gives 179556.15

Answer:

$179556.15$