document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=593990>Question 593990</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Show work.<BR>\n" );
document.write( "Good morning, Please I need help with this problem.Thanks in advance\r<BR>\n" );
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document.write( "A credit union pays 7.4% annual interest compound annually. What deposit today (present value)would amount to $200,000 in 10yrs.Hint: Solve the compound interest formula for P.  </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #376571 by </B><A HREF=/tutors/aboutme.mpl?userid=stanbon><B>stanbon(75887)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=stanbon><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=376571\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> A credit union pays 7.4% annual interest compound annually. What deposit today (present value)would amount to $200,000 in 10yrs.Hint: Solve the compound interest formula for P. <BR>\n" );
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document.write( "A(t) = P(1+(r/n))^(nt)<BR>\n" );
document.write( "200,000 = P(1+(0.074/1))^(1*10)<BR>\n" );
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document.write( "Solve for \"P\":<BR>\n" );
document.write( "200,000 = P(1.074)^10<BR>\n" );
document.write( "P = 200,000/(1.074)^10<BR>\n" );
document.write( "P = $97,946.11<BR>\n" );
document.write( "=====================<BR>\n" );
document.write( "Cheers,<BR>\n" );
document.write( "stan H. </SPAN>\n" );
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