SOLUTION: Find the present value that will give a future value of $9,280 at 9.75 % compounded monthly for 2 years and 3 months.

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Question 565086: Find the present value that will give a future value of $9,280 at 9.75 % compounded monthly for 2 years and 3 months.
Answer by Edwin McCravy(20060) About Me  (Show Source):
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 + r%2Fn)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%263%2F12 = 2.25

A = P(1 + r%2Fn)nt
9280 = P(1 + .0975%2F12)12·2.25

9280 = P(1 + .0079166667)27
9280 = P(1.007916667)27
9280 = P(1.237271244)

Divide both sides by 1.237271244

9280%2F1.237271244 = 7500.376369

Answer: $7500.38

Edwin