SOLUTION: plzz help for this problem What amount today is economically equivalent to $13,100 paid 29 months from now if money is worth 10.8% compounded monthly? (Do not round intermediate

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Question 1021561: plzz help for this problem
What amount today is economically equivalent to $13,100 paid 29 months from now if money is worth 10.8% compounded monthly? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Amount today $
Answer by robertb(5830) About Me  (Show Source):
You can put this solution on YOUR website!
Use the compound balance/amount formula: A+=+P%281%2Br%2Fn%29%5E%28nt%29
==>13100+=+P%281%2B0.108%2F12%29%5E29 ==> 13100+=+P%2A1.009%5E29
==> P+=+13100%2F1.009%5E29+=+10102.47
Therefore the future value of $13,100 is equivalent to $10,102.47 today.