An Amount P , Invested at a Simple Interest Rate

question 74

Multiple Choice

An amount P , invested at a simple interest rate r , will grow to an amount A in t years, according to the formula A = P ( 1 + r t ) . Suppose a man invested some money at 5.6%. If after 3 years, he had $6,424.00 on deposit, what amount did he originally invest? Round your answer to the nearest integer.

• A) P = $5,350
• B) P = $5,300
• C) P = $5,500
• D) P = $5,600

Understand and apply the formula for calculating the relationship of net income to net sales.

Calculate the inventory turnover rate.

Compute the rate of return on investment (ROI).

Calculate the acid test ratio.

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Definitions:

Ethyl

An organic functional group or radical derived from ethane, containing two carbon atoms.

Decane

A saturated hydrocarbon with the molecular formula C₁₀H₂₂, which is a component of gasoline.

Isomers

Compounds with the same molecular formula but different structural arrangements, leading to different physical and chemical properties.

Common Name

A non-systematic name of a chemical compound, usually based on its history or source, rather than its chemical structure.