Dean M. answered • 12/16/15

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Julia,

To calculate this, you will need to convert all of the items into the same units. For example, simple interest is the amount of interest per year, while "Charlie" is only interested in 15 weeks. So...

15 weeks / 52 weeks in a year = 0.29 years

P = (A) / (1 + rt)

P = 800 / [1 + (0.04)(0.29)]

P = 800 / 1.0116

P = $790.82, the amount of money "Charlie" needs to start with.