# Find the present value of #15

Anonymous
account_balance_wallet \$5

### Question Description

Find the present value of \$40,000 due in 4 years at the given rate of interest 8%/year compounded monthly.
 A. The present value is \$28,948.67. B. The present value is \$29,433.94. C. The present value is \$29,076.82. D. The present value is \$29,748.06.

Athul K
School: University of Virginia

hello

compound interest formula

A= P (1+ r/n)^nt

40000  = P(1+ 0.08/12)^12*4

40000 =P(1.00667)^48

P = 40000/ (1.00667)^48

P = 29076.82

The present value is \$29,076.82.

hope you understood..please message if you have any doubts...thank you

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Anonymous
awesome work thanks

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