document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1183460>Question 1183460</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Jezreel borrowed PHP250,000.00 from a bank at 6% discount rate. How much would be receive from the bank if he agreed to pay the amount after 5 years. </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #813853 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=813853\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> he borrowed 250,000 from the bank at 6% discount rate.\r<BR>\n" );
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document.write( "he agreed to pay them back that amount in 5 years.\r<BR>\n" );
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document.write( "what i understand from this is that the bank expects him to pay them 250,000 in 5 years.\r<BR>\n" );
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document.write( "since the bank needs to make 6% a year on their investment, you are looking for the present value of a future value of 250,000.\r<BR>\n" );
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document.write( "the formula to use is 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( "in this problem, the formula becomes:\r<BR>\n" );
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document.write( "250,000 = p * 1.06 ^ 5.\r<BR>\n" );
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document.write( "divide both sides of this equation by 1.06 ^ 5 to get:\r<BR>\n" );
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document.write( "250,000 / 1.06 ^ 5 = p\r<BR>\n" );
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document.write( "solve for p to get:\r<BR>\n" );
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document.write( "p = 186,814.5432.\r<BR>\n" );
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document.write( "that's how much he would get now if he promises to pay the bank 250,000 five years from now.\r<BR>\n" );
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document.write( "if he needed 250,000 now, then the formula becomes:\r<BR>\n" );
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document.write( "f = 250,000 * 1.06 ^ 5 = 334,556.3944.\r<BR>\n" );
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document.write( "that's how much he would have to pay the bank back in 5 years if he needed to have 250,000 now.\r<BR>\n" );
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document.write( " </SPAN>\n" );
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