If a bank pays an APR of 17%, how much should be deposited now to have $1200?

If a bank pays an APR of 17%,

how much should be deposited now to have $1200? 

a)

P = 1200 = 1.17^x 

1.17^7 = 1200, 7 years later  

$400 should be deposited now

b)

1.17^6 = 1200, 6 years later  

$468 should be deposited now.

P(1.17)^7 = 1200

3.001P = 1200

P = $399.83P(1.17)^6 = 1200

2.565P = 1200

P = $467.81

Which method of interest is to be used?

If simple:

I = Prt

We know r = 0.17 and t = 7

I = P(0.17)(7)

I = 1.19P

We want $1200 to be the sum of I and P, so:

I + P = 1200

I = 1200 - P

Substitute this expression for I in the other equation to get:

I = 1.19P

1200 - P = 1.19P

Solve for P:

1200 = 2.19P

1200 / 2.19 = P

P = $547.95 (rounded to the nearest penny)

the formula is  A=P(1+r/n)^n times t   where  A = total amount 

  P = principal or amount of money deposited, r = annual interest raten = number of times compounded per yeart = time in years

I hope this helps😁😁😁😁

1200 = P * 1.17^t

1200 / 1.17^t = P

a) P = 1200 / 1.17^7

b) P = 1200 / 1.17^6