SOLUTION: Find the principal needed now to get the given amount, that is, find the present value. To get $500 after 3 years at 5% compounded quarterly The present value of $500 is $?

Algebra ->  Finance -> SOLUTION: Find the principal needed now to get the given amount, that is, find the present value. To get $500 after 3 years at 5% compounded quarterly The present value of $500 is $?      Log On


   

Question 1087643: Find the principal needed now to get the given amount, that is, find the present value.
To get $500 after 3 years at 5% compounded quarterly
The present value of $500 is $?
Answer by rfer(16322) About Me  (Show Source):
You can put this solution on YOUR website!
500=x(1.0125)^(4*3)
500=x(1.161)
500/1.161=x
x=$431