1]
It is required to calculate the initial investment A.
2]
Given facts that time is
t = 3 years
interest equals to
p = 1.12%
maturity value equals to
B = 38500
3]
Formula is
[tex] \: \: \: B = A × (1 + t × \frac{p}{100\%}) [/tex]
so
[tex]A = \frac{B}{1 + \frac{t \times p}{100\%} } [/tex]
4]
[tex] \: \: \: A = \frac{38500}{1 + \frac{4 \times 1.12}{100} } = \frac{38500}{ \frac{104.48}{100} } = 36849.16[/tex]
Answer: P 36,849.16
