Question

you decided to invest some money in a cd that yields 4.72% simple interest when invested for 27 years. how much must you invest so that after those 27 years, your cd is worth $275,000?
use this formula:
$pv = \frac{fv}{(1+rt)}$
enter the dollar amount rounded up to the nearest cent.
your answer:
answer
view hint for question 3

Explanation:

Step1: Identify given values

$FV = 275000$, $r = 0.0472$, $t = 27$

Step2: Calculate denominator $1+rt$

$1 + (0.0472 \times 27) = 1 + 1.2744 = 2.2744$

Step3: Compute present value $PV$

$PV = \frac{275000}{2.2744}$

Answer:

$120911.01$