document.write( "Question 565086: Find the present value that will give a future value of $9,280 at 9.75 % compounded monthly for 2 years and 3 months. \n" ); document.write( "

Algebra.Com's Answer #365642 by Edwin McCravy(20060) $\"\"$ $\"About$

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Find the present value that will give a future value of $9,280 at 9.75 % compounded monthly for 2 years and 3 months.
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document.write( "A = P(1 + )^nt\r\n" );
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document.write( "where \r\n" );
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document.write( "A stands for the finAl amount\r\n" );
document.write( "P stands for the the Previous Principle, The Peginning amount :)\r\n" );
document.write( "r stands for the rate expressed as a decimal.\r\n" );
document.write( "n represents the number of times per year the interest is compounded.\r\n" );
document.write( "t represents the time in years.\r\n" );
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document.write( "A = 9280\r\n" );
document.write( "P = ?\r\n" );
document.write( "r = .0975\r\n" );
document.write( "n = 12  \r\n" );
document.write( "t =  = 2.25\r\n" );
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document.write( "A = P(1 + )^nt\r\n" );
document.write( "9280 = P(1 + )^12·2.25\r\n" );
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document.write( "9280 = P(1 + .0079166667)²⁷\r\n" );
document.write( "9280 = P(1.007916667)²⁷\r\n" );
document.write( "9280 = P(1.237271244)\r\n" );
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document.write( "Divide both sides by 1.237271244\r\n" );
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document.write( " = 7500.376369\r\n" );
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document.write( "Answer: $7500.38\r\n" );
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document.write( "Edwin

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