SOLUTION: Find the present value. Round to the nearest cent. To get $10,000 after 2 years at 18% compounded monthly a. $5000.00 b. $6995.44 c. $8363.87 d. $11,956.18

Algebra ->  Functions -> SOLUTION: Find the present value. Round to the nearest cent. To get $10,000 after 2 years at 18% compounded monthly a. $5000.00 b. $6995.44 c. $8363.87 d. $11,956.18       Log On


   

Question 1060945: Find the present value. Round to the nearest cent. To get $10,000 after 2 years at 18% compounded monthly
a. $5000.00
b. $6995.44
c. $8363.87
d. $11,956.18
Answer by Boreal(15235) About Me  (Show Source):
You can put this solution on YOUR website!
10,000=A(1+(.18/12)^24, the 24 coming from 12 compoundings a year for 2 years
The parentheses is 1.015
raise that to the 24th power
1.43. Don't round yet
Now divide 10,000 on the left by that 1.43xxxx and A will be the result.
It is $6995.44.
b.