SOLUTION: Find the principal needed now to get the given​ amount; that​ is, find the present value. To get $3000 after 33/4 years at 5​% compounded daily. The present v

Algebra.Com
Question 1088728: Find the principal needed now to get the given​ amount; that​ is, find the present value.
To get $3000 after 33/4 years at 5​% compounded daily.
The present value of $ 3000 is?$______

​(Round to the nearest cent as​ needed.)

Found 2 solutions by Theo, MathTherapy:
Answer by Theo(13342)   (Show Source): You can put this solution on YOUR website!
f = p * (1+r) ^ n

f = 3000
p = what you want to find.
r = 5% / 365 / 100 = .0001369863014
n = 33 * 365 = 12045

number of days in a year can be 360, 365, 365.4, or some other value depending on how you look at the number of days in a year.

i chose 365.

if the number of days in a year is different than that, you can redo the calculations using the other value for number of days in a year.

interest rate = interest rate % divided by 100.

formula becomes:

3000 = p * (1 + .0001369863014) ^ 12045

simplify to get:

3000 = p * 5.206391456

solve for p to get:

p = 3000 / 5.206391456 = 576.2148362

an investment of 576.2148362 will becomes 3000 in 33 years at 5% compounded daily.

576.2148362 * (1 + 1.369863014 * 10 ^ -4) ^ (33 * 365) = 3000

note that 1.369863014 * 10 ^ -4 is equal to .0001369863014

note that 33 * 365 = 12045

it all checks out, assuming 365 days in a year.

i assumed 33 years.

i'm not sure what you means by 33/4.

you could have meant 33 or 34 years.

you could have meant 33/4 = 8.25 years.

use the same formula and make any assumption you want and you'll get the answer you're looking for.

just keep in mind.....

r = annual interest rate % divided by number of compounding periods per year divided by 100.

n = number of years times number of compounding periods per year.










Answer by MathTherapy(10555)   (Show Source): You can put this solution on YOUR website!
Find the principal needed now to get the given​ amount; that​ is, find the present value.
To get $3000 after 33/4 years at 5​% compounded daily.
The present value of $ 3000 is?$______

​(Round to the nearest cent as​ needed.)
PV of a FV amount of $3,000, for  at 5% interest, compounded daily (360/365 days):  

RELATED QUESTIONS

Find the principal needed now to get the given amount, that is, find the present value. (answered by mathmate)
Find the principal needed now to get each amount; that is, find the present value. To... (answered by Alan3354)
Find the principal needed now to get the given amount, that is, find the present value. (answered by mathmate)
Find the principal needed now to get the given amount, that is, find the present value. (answered by rfer)
Find the principal needed now to get the given​ amount; that​ is, find the present... (answered by josgarithmetic)
Find the principal needed now to get the given amount, that is, find the present value. (answered by mathmate)
Find the principal needed now to get the given​ amount; that​ is, find the present... (answered by josgarithmetic)
Find the principal needed now to get the given​ amount; that​ is, find the present... (answered by Alan3354)
If Don Gecewicz invests ​$3000 at 8​% interest compounded​ quarterly,... (answered by Boreal)