document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1144276>Question 1144276</A>: <I><SPAN STYLE=\"word-break: break-all;\"> find the present value and the compound discount of 6600$ due in 7 years 6 months. if interest is 7.2% quarterly.<BR>\n" );
document.write( " </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #765389 by </B><A HREF=/tutors/aboutme.mpl?userid=addingup><B>addingup(3677)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=addingup><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=addingup><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=765389\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> I think the problem should say interest of 7.2% per annum compounded quarterly. But that's not what you say, you say 7.2% quarterly, so here it goes:<BR>\n" );
document.write( ".<BR>\n" );
document.write( "PV = (Initial cash flow)/(1+rate)^n<BR>\n" );
document.write( "7 years 6 months = 30 quarters<BR>\n" );
document.write( "PV = 6600/(1+0.072)^30 = 820<BR>\n" );
document.write( "-.-.-.-.-.-.-.-<BR>\n" );
document.write( "Note: if it was 7.2%/year compounded quarterly, it would be:<BR>\n" );
document.write( ".<BR>\n" );
document.write( "7 years 6 months = 30 quarters<BR>\n" );
document.write( "Interest: 0.072/4 = 0.018<BR>\n" );
document.write( "PV = 6600/(1+0.018)^30 = 3866.45<BR>\n" );
document.write( ".<BR>\n" );
document.write( "I don't understand what you mean by \"the compound discount\". You compound when you go from Present Value to Future Value and discount when you go from Future to Present </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );