The simple interest is given by:
[tex]I=PVrt[/tex]Where:
PV = Present value or principal
I = Interest
r = rate
t = time
Solve for PV:
[tex]\begin{gathered} PV=\frac{I}{rt} \\ so\colon \\ PV=\frac{40}{0.0166\cdot4} \\ PV=602.4 \end{gathered}[/tex]Answer:
$602.4
