SOLUTION: Find the present value of $20,000 at 7% compounded monthly for 3 years. a. $1,750.71 b. $16,221.58 c. $19,654.04 d. $24,658.51

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Question 56740: Find the present value of $20,000 at 7% compounded monthly for 3 years.

a. $1,750.71
b. $16,221.58
c. $19,654.04
d. $24,658.51


Answer by rcmcc(152)   (Show Source): You can put this solution on YOUR website!
use the equation A=P(1+i)^n to calculate simple compound interest.
p=20 000
i=0.07/12 months in a year
n=3x12 months in a year
A=20 000(1+(.07/12))^36
A=$24,658

The answer is d.)

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