Description
Find the present value of $40,000 due in 4 years at the given rate of interest 8%/year compounded monthly.
A. | ||
B. | ||
C. | ||
D. |
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40000 = PV [1+(0.08/12)]^48
PV = 40000/[1+(0.08/12)]^48
PV = $29,076.82.
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