document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1173007>Question 1173007</A>: <I><SPAN STYLE=\"word-break: break-all;\"> If money can be invested at 7% compounded monthly, find the present value of which is due after 2 years and 11 months from today. </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #798159 by </B><A HREF=/tutors/aboutme.mpl?userid=Theo><B>Theo(13342)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Theo><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=Theo><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=798159\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> the general formula is:<BR>\n" );
document.write( "f = p * (1 + r) ^ n\r<BR>\n" );
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document.write( "f is the future value<BR>\n" );
document.write( "p is the present value<BR>\n" );
document.write( "r is the interest rate per time period.<BR>\n" );
document.write( "n is the number of time periods.\r<BR>\n" );
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document.write( "if the time period is in months, then the interest rate per time period is per month and the number of time periods is months.\r<BR>\n" );
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document.write( "to find the present value, do the following:<BR>\n" );
document.write( "start with f = p * (1 + r) ^ n<BR>\n" );
document.write( "solve for p to get:<BR>\n" );
document.write( "p = f / ((1 + r) ^ n)\r<BR>\n" );
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document.write( "if the rate per time period is given in percent per year, and the time periods is in months, then do the following:<BR>\n" );
document.write( "r% per year = 7<BR>\n" );
document.write( "divide that by 100 to get r per year = .07<BR>\n" );
document.write( "divide that by 12 to get r per month = .07/12.\r<BR>\n" );
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document.write( "if the number of time periods is given in number of years, and the number of time periods needs to be in months, then do the following:<BR>\n" );
document.write( "2 years and 11 months is equal to 24 months and 11 months which is equal to 35 months.\r<BR>\n" );
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document.write( "you have r = .07/12 per month and n = 35 months.\r<BR>\n" );
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document.write( "the formula of p = f / ((1 + r) ^ n) becomes:<BR>\n" );
document.write( "p = f / ((1 + .07/12) ^ 35<BR>\n" );
document.write( "simplify to get:<BR>\n" );
document.write( "p = f / 1.225775232\r<BR>\n" );
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document.write( "your present value will be the future value divided by 1.225775232.\r<BR>\n" );
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document.write( "for example, if the future value is 50,000, then the present value will be 50,000 / 1.225775232 = 40790.51256\r<BR>\n" );
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document.write( " </SPAN>\n" );
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