2. What amount of money must Kurt Blixen invest at 4.75% to have it earn $10,000 in 90 days?

Kurt Blixen must invest $85,2296.94.

Given the following data;

To find how much money Kurt Blixen must invest;

Mathematically, simple interest is given by the formula;

Where:

First of all, we would convert the time in days to years.

Conversion:

365 days = 1 year

90 days = x year

Cross-multiplying, we have;

x = 0.247 year

Making P the subject of formula;

Substituting the values into the formula, we have;

P = $85,2296.94

Therefore, Kurt Blixen must invest $85,2296.94.

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