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Simple Interest Example: Find the present value of Solution P2,000 which is due at the end D = Fdt of 90 days at 5% simple = P2,000(.05) (?) discount. = P25 Given: P = F - D F = P2,000 = P2,000 - 25 = P1,975 t = - = Alternative Solution P = F(1 - dt) d = .05 = P2000 [1 0.05))] = P1,975 1 4