SOLUTION: Find the present value of $100,000 if interest is paid at a rate of 8% per year, compounded monthly, for 5 years. I used the formula: 100,000 = P(1+ 0.08/12)^(12)(5) = 66,979.24

SOLUTION: Find the present value of $100,000 if interest is paid at a rate of 8% per year, compounded monthly, for 5 years. I used the formula: 100,000 = P(1+ 0.08/12)^(12)(5) = 66,979.24

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Question 47849This question is from textbook College Algebra
: Find the present value of $100,000 if interest is paid at a rate of 8% per year, compounded monthly, for 5 years.
I used the formula: 100,000 = P(1+ 0.08/12)^(12)(5) = 66,979.24.
Does this sound about right? I'm having trouble with the e function on the calculator.
Thank you very much! This question is from textbook College Algebra

Answer by Nate(3500) (Show Source): You can put this solution on YOUR website!
100,000(1 + 0.08/12)^(12*5) = 148,984.57
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