document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1193551>Question 1193551</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Use the following​ formula, where P is the present value of A dollars t years from​ now, earning annual interest r compounded n times per year.<BR>\n" );
document.write( "P=A(1+r/n)^-nt<BR>\n" );
document.write( "Find the present value of ​$400,000 20 years from​ now, if interest is compounded semiannually at ​11.4%.\r<BR>\n" );
document.write( "\n" );
document.write( "The present value is approximately ​$___<BR>\n" );
document.write( "​(Round to the nearest hundred as​ needed.)<BR>\n" );
document.write( "thank you for your generosity!! </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #825591 by </B><A HREF=/tutors/aboutme.mpl?userid=Boreal><B>Boreal(15235)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Boreal><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=Boreal><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=825591\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> P=400000*(1+(0.114/2)^40, the 40 is 2 times compounded per year for 20 years<BR>\n" );
document.write( "Round at the end. $3,673,300<BR>\n" );
document.write( "rough check: should double in about 6 years (slightly longer) due to the rule of 70. That is 3 doublings in 18 years, and the final amount is a little more than 9 times the original, which makes sense.<BR>\n" );
document.write( " </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );