a=16,00, r=11.5%, t=5 years

Question

determine the present value, p, you must invest to have the future value, a, at simple interest rate r after time t. round uo to nearest cent

Answer 1

I assume
a=$16,000, and
r=11.5% compounded yearly.

So
a=p(1+r)^n
=p(1.115)^5
p=16000/(1.115^5)
=$9284.22

Answer 2

A = $9053.50, r = 13.5%, t = 17 months