document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1087642>Question 1087642</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Find the principal needed now to get the given amount, that is, find the present value.\r<BR>\n" );
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document.write( "To get $3000 after 33/4 years at 5% compounded daily\r<BR>\n" );
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document.write( "The present value of $3000 is $? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #701946 by </B><A HREF=/tutors/aboutme.mpl?userid=mathmate><B>mathmate(429)</B></A><img src=\"/images/stars/stars-10.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=mathmate><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/cgi-bin/show-face.mpl?user=mathmate><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=701946\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Question:<BR>\n" );
document.write( "Find the principal needed now to get the given amount, that is, find the present value.<BR>\n" );
document.write( "To get $3000 after 33/4 years at 5% compounded daily<BR>\n" );
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document.write( "Solution:<BR>\n" );
document.write( "F=3000<BR>\n" );
document.write( "APR=5%<BR>\n" );
document.write( "i=0.05/365 (daily interest rate)<BR>\n" );
document.write( "n=33/4*365 (days)<BR>\n" );
document.write( "Use compound interest formula<BR>\n" );
document.write( "F=P(1+i)^n<BR>\n" );
document.write( "3000=P(1+0.05/365)^(33/4*365)<BR>\n" );
document.write( "=><BR>\n" );
document.write( "P=3000/(1+0.05/365)^(33/4*365)<BR>\n" );
document.write( "=3000/1.51055<BR>\n" );
document.write( "=$1986.04   [present value required to accumulate 3000 at APR=5% for 33/8 years]<BR>\n" );
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