You can put this solution on YOUR website! Find the present value that will give a future value of $9,280 at 9.75 % compounded monthly for 2 years and 3 months.
A = P(1 + )nt
where
A stands for the finAl amount
P stands for the the Previous Principle, The Peginning amount :)
r stands for the rate expressed as a decimal.
n represents the number of times per year the interest is compounded.
t represents the time in years.
A = 9280
P = ?
r = .0975
n = 12
t = = 2.25
A = P(1 + )nt
9280 = P(1 + )12·2.25
9280 = P(1 + .0079166667)27
9280 = P(1.007916667)27
9280 = P(1.237271244)
Divide both sides by 1.237271244
= 7500.376369
Answer: $7500.38
Edwin
