document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1087641>Question 1087641</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 $200 after 3 years at 10% compounded monthly\r<BR>\n" );
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document.write( "The present value of $200 is $? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #701947 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=701947\">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 $200 after 3 years at 10% compounded monthly<BR>\n" );
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document.write( "Solution:<BR>\n" );
document.write( "F=200<BR>\n" );
document.write( "APR=10%<BR>\n" );
document.write( "i=0.1/12 [monthly interest]<BR>\n" );
document.write( "n=3*12=36 [months]<BR>\n" );
document.write( "  <BR>\n" );
document.write( "Use present value formula:<BR>\n" );
document.write( "P=F/(1+i)^n<BR>\n" );
document.write( "=200/(1+0.1/12)^36<BR>\n" );
document.write( "=200/1.34818<BR>\n" );
document.write( "=$148.35 [present value required to accumulate $200 after 3 years at APR 10% compounded monthly] </SPAN>\n" );
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