What principal will have a future value of $640, at 12.1% in 6 months?
A) $600
B) $603.50
C) $678.72
D) $370.80
E) $800

Question

Quizplus · Accepted Answer

To find the principal, we can use the formula: 
FV = PV(1 + r)
where FV = $640, r = 12.1% = 0.121, and the time period is 6 months or 0.5 years. 
Substituting these values, we get: 
$640 = PV(1 + 0.121/2)
Simplifying, we get: 
PV = $603.50 
Therefore, the best choice is B.

What Principal Will Have a Future Value of $640, at 12.1