SOLUTION: Find the principal needed now to get the given amount, that is, find the present value. To get $500 after 3 years at 5% compounded quarterly The present value of $500 is $?

SOLUTION: Find the principal needed now to get the given amount, that is, find the present value. To get $500 after 3 years at 5% compounded quarterly The present value of $500 is $?

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Question 1087643: Find the principal needed now to get the given amount, that is, find the present value.
To get $500 after 3 years at 5% compounded quarterly
The present value of $500 is $?
Answer by rfer(16322) (Show Source): You can put this solution on YOUR website!
500=x(1.0125)^(4*3)
500=x(1.161)
500/1.161=x
x=$431
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