What payment 7 months from now would be equivalent in value to a $3,300 payment due 23 months from now? The value of money is 2.7% simple interest. Round your answer to 2 decimal places. Show all work and how you arrive at the answer..

Solution: For simple interest,$$ A=P\left(1+rt\right) $$For payment due 23 months,$$ 3300=P\left(1+\left(0.027\right)\left(23\right)\right) $$$$ P=\frac{3300}{1+\left(0.027\right)\left(23\right)} $$$$ P\approx2035.78 $$For payment due 7 months,$$ A=2035.78\left(1+\left(0.027\right)\left(7\right)\right) $$$$ A\approx2420.54 $$ Answer: $2,420.54