Find the present value of #15

Anonymous
timer Asked: Dec 1st, 2015
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.
B.
C.
D.

Tutor Answer

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


ANSWER IS OPTION C

The present value is $29,076.82.


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

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Review

Anonymous
awesome work thanks

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